Safeway income grows, sales momentum continues

PLEASANTON, Calif. —Safeway reported net income of $130.2 million (38 cents per diluted share) for the third quarter of 2011 compared with $122.8 million (33 cents per diluted share) for the third quarter of 2010.

Total sales were $10.1 billion in the third quarter of 2011 compared with $9.4 billion in the third quarter of 2010, due primarily to higher fuel sales, a 1.5% increase in identical-store sales (excluding fuel) and a higher Canadian exchange rate.

"Our sales momentum continued to build in the third quarter, and our costs were well controlled," said Steve Burd, chairman, president and CEO. "At the same time, we continued to innovate throughout the business to meet our customers' needs and build their loyalty."

Safeway is reaffirming earnings per diluted share and free cash flow guidance for the year. Identical-store sales, excluding fuel, are expected to be approximately 1% for the year.