Safeway sees 4Q net income growth

PLEASANTON, Calif. Safeway reported net income of $199.7 million (46 cents per diluted share) for the third quarter of 2008 compared to net income of $194.6 million (44 cents per diluted share) for the third quarter of 2007.

Total sales increased 3.9% to $10.2 billion in the third quarter of 2008 compared to $9.8 billion in the third quarter of 2007. This increase was driven by higher fuel sales and contributions from Lifestyle stores. Identical-store sales increased 2.8% including fuel and 0.5% excluding fuel.

“During the third quarter we took action to provide our customers with better everyday values,” said Steve Burd, chairman, president and ceo. “As we begin the fourth quarter, our sales momentum is building, with identical-store sales (excluding fuel) currently above 1.5%, and we are continuing to reduce costs. We continue to believe our diluted earnings per share for 2008 will be in the range of $2.25 to $2.35 for this 53-week year.” 

Safeway said it expects fiscal 2008 identical-store sales growth, excluding fuel, of 1% to 2%.