Albertson’s 3rd-Quarter Profit Misses Forecasts

Albertson’s Inc. reported lower-than-expected fiscal third-quarter profit and said fourth-quarter results would miss estimates because of higher costs and competition from discount chains. The nation’s second-largest supermarket operator said profit from operations rose just 1% to $187 million, or 45 cents a share, missing by 3 cents the average estimate of analysts polled by First Call/Thomson Financial. Sales were flat at $8.99 billion. Albertson’s sales have been hurt by competition from Wal-Mart Stores Inc. and other chains such as Costco Wholesale Corp. that offer lower prices. Costs have risen as Albertson’s remodeled Lucky supermarkets in California and made other changes after its acquisition of American Stores Co. The company lowered its fourth-quarter profit forecast to 50 cents a share, well below the 75 cents analysts anticipated. The news was released after the close of U.S. trading. Shares of Boise, Idaho-based Albertson’s fell 63 cents to close at $24.06 on the NYSE.