BRIEF: Supervalu Inc. warns of lower profit ahead

Jul 22, 2008 (Star Tribune - McClatchy-Tribune Information Services via COMTEX) -- SVU | Quote | Chart | News | PowerRating -- Supervalu Inc. warned that its annual profit will rise less than originally forecast as higher food and energy costs force consumers to cut spending.

The Eden Prairie-based grocery giant, which owns Albertsons, Shaw's and Save-A-Lot, said in a statement that earnings per share for the year will be $3.04 to $3.20, down from a previous forecast of $3.10 to $3.25, excluding acquisition-related expenses.

Sales at stores open at least a year, a key retail metric known as "same-store sales," will rise 0.5 percent, lower than its previous forecast of 1 percent to 2 percent, Supervalu said.

"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 year," said Jeff Noddle, Supervalue chief executive officer and chairman in the statement.

Shares of Supervalu fell 84 cents to $26.98 a share in early morning trading.

The company said profits for the first quarter ended June 14 rose 9.5 percent to $162 million, or 76 cents a share, from $148 million, or 69 cents a share, a year earlier. Net sales were virtually flat at $13.3 billion.

Chris Serres --612-673-4308

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