Supervalu 3Q earnings up 25%

MINNEAPOLIS Supervalu today reported third quarter net sales of $10.2 billion compared to $10.7 billion last year, net earnings of $141 million an increase of 25% compared to $113 million last year, and diluted earnings per share of 66 cents an increase of 22% compared to 54 cents last year.

The company reported third quarter retail net sales were $7.9 billion, compared to $8.4 billion last year, the decrease reflecting one less week of acquired operations, or approximately $500 million. Identical-store sales growth, excluding fuel, was 0.5%. Net interest expense for the third quarter was $164 million compared to $183 million last year reflecting one less week of the acquired operations, lower debt levels and the benefit of lower borrowing rates in the current quarter.

The company reported year-to-date fiscal 2008 net sales of $33.7 billion compared to $27.1 billion last year, an increase of 24%. Net earnings increased 32%to $437 million compared to $332 million last year, and reported diluted earnings per share increased 16% to $2.03 compared to $1.75 last year. Year-to-date fiscal 2008 results include charges for one-time acquisition-related costs of 16 cents per diluted share compared to 15 cents per diluted share last year.

The company updated its fiscal 2008 reported diluted earnings per share guidance range to $2.71 to $2.77, reflecting the revised guidance for identical store sales growth of 0.5% to 1% and for pre-tax net synergies of approximately $40 million.