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* Kroger Co., the No. 1 U.S. grocer, reported a 17% increase in second-quarter earnings to $263 million, or 32 cents a share, matching analysts’ expectations. Sales rose 4.2% to $11.48 billion. The Cincinnati-based company also reaffirmed its outlook through fiscal 2002, but it cautioned that price competition in the industry has gotten hotter.

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