Supervalu reports 9% net earnings increase

MINNEAPOLIS Supervalu reported sales and earnings for the first quarter of fiscal 2009. The company reported first quarter net sales of $13.3 billion compared to $13.3 billion last year, net earnings of $162 million, an increase of 9% compared to $148 million last year, and diluted earnings per share of 76 cents, an increase of 10% compared to 69 cents last year.

Jeff Noddle, Supervalu chairman and ceo said, “While we are pleased with our record results and the continued progress of the Albertsons integration, the ongoing weakness in the economy combined with higher food and energy inflation has created conditions that make us take a more cautious view for the balance of the fiscal year. In light of the macroeconomic environment, we have updated our guidance and are responding with tighter expense controls and other cost-savings activities. We remain confident that we are doing the right things for the long-term health of our business and are effectively managing those factors under our control in order to create a foundation for sales momentum and future growth.” 

The company said it expects earnings per diluted share for fiscal 2009 to be in the range of $3 to $3.16 per diluted share. Identical-stores sales growth, excluding fuel, is now projected to be approximately 0.5% compared to previous guidance of 1% to 2%.