Profits Up for Albertson’s, American Stores

Supermarket chains Albertson’s Inc. and American Stores Co., which plan to merge in an $11.7-billion deal, both reported higher first-quarter profits. Albertson’s met First Call’s consensus earnings estimates, while American Stores topped estimates by a penny a share. American Stores, Salt Lake City-based parent of Acme Markets, Lucky Stores and Sav-on Drugs, posted earnings of $101.4 million or 36 cents a diluted share, including a gain of $28.8 million, on sales of $5.05 billion. Without the gain, the company would have reported 30 cents a share in profit, beating First Call’s consensus estimate of 29 cents. Last year, the 1,585-store chain posted a profit of $65.9 million, or 24 cents, on sales of $4.87 billion. Boise, Idaho-based Albertson’s reported a 24% increase in net earnings to $137.1 million, or 56 cents a share, from $110.6 million, 45 cents, a year ago. Excluding one-time costs, net earnings would have increased to $139.7 million, or 57 cents, meeting estimates. Sales at the chain’s 990 stores increased to $4.17 billion from $3.85 billion a year ago. American’s shares rose 50 cents to close at $33.31, while Albertson’s shares rose 69 cents to close at $54.44 on the NYSE.