Safeway Profit Tumbles 36%, Reaffirms Guidance, "Sales Remained Soft" (SWY)

Thu. October 15, 2009; Posted: 09:14 AM

Oct 15, 2009 (SmarTrend(R) News Watch via COMTEX) -- SWY | Quote | Chart | News | PowerRating -- 10/15/2009-Safeway (NYSE:SWY) reported Q3 EPS of 31 cents, topping consensus estimates of 29 cents. Revenues in the quarter fell 7% year-over-year to $9.46 billion, inline with consensus estimates. During the third quarter of 2009, Safeway purchased 10.2 million shares of its common stock at an average cost of $18.84 per share and a total cost of $191.6 million. Safeway reiterated its EPS guidance for the full-year 2009 of $1.70 - $1.90 (vs. consensus estimates of $1.73). Safeway also reiterated its free cash flow guidance for the full-year 2009 of $1.1 billion - $1.3 billion.

"Safeway's sales remained soft, driven largely by deflation in dairy, produce and meat, and a sluggish economy," said Steve Burd, Chairman, President and CEO. "However, we are encouraged that our household and transaction counts increased in the quarter, and that volume trends continue to improve. In addition, our year-to-date free cash flow of $865 million is up $366 million, or 73%, over last year."

"In this difficult economy, we are working diligently to lower costs and meet the needs of our customers with high quality products, lower everyday prices and attractive club card specials," added Burd.

Write to Chip Brian at cbrian@tradethetrend.com

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For full details on Safeway Inc (SWY) click here. Safeway Inc (SWY) has Short Term PowerRatings of 5. Details on Safeway Inc (SWY) Short Term PowerRatings is available at This Link.

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