Despite weather, Albertsons profits up

BOISE, Idaho – Food and drug retailer Albertsons Inc. reported that profits surged 19.5 percent in the third quarter despite the adverse affect from four hurricanes that hit Florida and other states this past summer.

The company, which owns Albertsons, Jewell, Shaw’s and Osco Drugs, said Thursday it earned $110 million, or 29 cents a share, in the August-October period compared with $92 million, 25 cents a share, a year ago.

The results were below Wall Street expectations. Wall Street analysts surveyed by Thomson First Call had anticipated 33 cents a share in earnings.

Sales rose to nearly $10 billion from $8.7 billion a year earlier.

Revenues were helped by the acquisition this year of more than 200 Shaw’s and Star Markets in New England and the company’s entry into the discount food market with its Extreme Inc. stores in Texas and Louisiana. Shaw’s has 22 stores in Maine.

But Albertsons chairman Larry Johnston said the Florida hurricanes cost the company 3 cents a share.

“We had encouraging performance during another tough quarter for food and drug retailers as consumer confidence declined in each month of the quarter and fuel prices continued to put pressure on discretionary income,” Johnston said.