Safeway profit dips 25% in Q1

Pleasanton, Calif. Safeway said Thursday that its first-quarter net income fell to $144 million from $193 million in the year-ago period, for a total decline of 25%.

Total revenue dropped to $9.24 billion, from $10 billion for the quarter.

“As anticipated, our earnings this quarter were negatively impacted by the shift in holiday sales, a decline in the Canadian currency exchange rate, a decline in fuel margins and higher pension expense,” said Steve Burd, chairman, president and CEO.

Safeway also invested $243.5 million in capital expenditures in first quarter 2009. The company opened one new Lifestyle store, completed 10 Lifestyle remodels and closed three stores. The grocer has reduced planned capital expenditures in 2009 from $1.2 billion to approximately $1.0 billion, and now plans to open approximately 10 new Lifestyle stores and complete approximately 100 Lifestyle remodels.

The company operates 1,737 stores in the United States and Canada.