Safeway Q2 Net Profit Plunges - Quick Facts

(RTTNews) - Supermarket chain Safeway Inc. (SWY) reported income from continuing operations of $58.1 million, or $0.24 per share in the second quarter of 2013, including increased legal reserves of $17.0 million on multiple matters, Blackhawk expense of $5.7 million, or $0.02 per share triggered by their IPO; as well as a gain on the sale of investments of $8.5 million, or $0.02 per share. Excluding these items totaling $0.04 per share, income from continuing operations amounted to $68.1 million, or $0.28 per share in the recent quarter, versus $47.6 million, or $0.20 per share, a year ago.

Second-quarter net income attributable to the company plummeted to $8.4 million, or $0.03 per share, from $122.7 million, or $0.51 per share, a year ago. After adjusting for the items in continuing and discontinued operations, quarterly net income attributable to Safeway amounted to $125.1 million, or $0.51 per share.

Sales and other revenue were $8.7 billion this quarter, lower than $8.83 billion in the comparable period.

For 2013, the firm expects adjusted per-share earnings of $1.02 - $1.12, assuming no benefit from the proceeds from the sale of its Canadian operations. After adjusting for discontinued operations, the Blackhawk IPO and the reduction of tax expense due to the resolution of federal income tax matters, this earnings guidance is at the lower end of its prior target of $2.25 - $2.45.