Increased Sales Help Kroger Meet Expectations

Kroger Co., the largest U.S. supermarket operator, said fiscal second-quarter earnings rose 16% to $234.5 million, or 28 cents a share, meeting expectations, on increased sales of private-label products and lower costs resulting from its acquisition of Fred Meyer Inc. Sales rose 7% to $11.02 billion. The acquisition of Fred Meyer in May 1999 boosted Kroger’s number of stores by a third and helped it negotiate lower prices from suppliers. Kroger, whose chains also include Food 4 Less, said it expects to exceed its savings goal from the acquisition of $260 million this year and to reach total savings of $380 million in 2001, a year earlier than expected. The Cincinnati-based company’s shares closed off 13 cents at $23.25 on the New York Stock Exchange.