Safeway Stores Inc. reported second-quarter earnings of...

Safeway Stores Inc. reported second-quarter earnings of $41 million, contrasted with a loss of $12.6 million a year ago. It was the first quarterly gain since the Oakland-based retail food company went private in November, 1986. The company attributed the gain to the sale of 99 stores in the Houston division for $27.1 million and wholesale and distribution operations and interest expense. Although Safeway is private, the company is required to make its earnings public because of $2.87 billion in public warrants and debentures.