Supervalu posts 3Q loss due to charges

MINNEAPOLIS Supervalu reported third quarter fiscal 2009 net sales of $10.2 billion and a net loss of $2.9 billion, or $13.95 per diluted share, including non-cash goodwill and intangible asset impairment charges of $3.3 billion pre-tax or $3.1 billion after-tax, or $14.57 per diluted share. When adjusted for the non-cash impairment charges, third quarter fiscal 2009 net earnings were $132 million or 62 cents per diluted share.

For fiscal 2009, Supervalu expects a diluted earnings (loss) per share on a GAAP basis of $(12.39) to $(12.14). Previous guidance called for diluted earnings per share of $2.86 to $2.96. Net sales are estimated to be approximately $45 billion. Identical-store sales, excluding fuel, is projected to be approximately negative 1% for fiscal 2009.

Supervalu announced its fiscal 2010 capital spending plan of approximately $850 million compared to an expected $1.2 billion capital spend in fiscal 2009. Store development plans for fiscal 2010 will focus on remodels including 85 to 95 major store remodels, 40 to 45 minor store remodels, 4 new traditional supermarkets, and approximately 50 to 60 limited assortment stores, including licensed stores. The reduction from fiscal 2009 reflects fewer new traditional supermarkets, fewer major remodels as most of the higher priority remodel projects have been completed, and reduced investment in technology spending as system migration activities are completed in fiscal 2010.