OKLAHOMA CITY -- Fleming Cos. here said last week that restructuring charges resulted in losses of $2.3 million for the second quarter and $26.6 million for the first half ended July 10.
rth quarter of two major customers -- Randall's Food Markets, Houston, and Furr's Supermarkets, Albuquerque, N.M. -- to self-distribution and the loss of sales related to the consolidation of five distribution centers, offset in part by a sales increase in Fleming's retail food segment.
The company said the loss included pre-tax charges of $15.9 million for the quarter and $61.4 million for the half related to the consolidation of the five distribution centers and the divestitures of three corporate chains -- Hyde Park Market, Fort Lauderdale, Fla.; Consumers Food & Drug, Springfield, Mo.; and Boogaart Stores, Kansas City, Kan.
Excluding the charges, the company said, net income would have been down 29.6% to $9.6 million for the quarter and 40.2% to $17.3 million for the half.
Operating cash flow fell 9.1% for the quarter to $96 million, or 2.9% of sales, compared with $106 million, or 3% of sales, a year ago; and dropped 14.2% for the half to $213.7 million, or 2.7% of sales, from $249.1 million, or 3.1% of sales, a year earlier.
According to Mark Hansen, chairman and chief executive officer, "Tremendous progress has been made in implementing growth and profitability strategies in food distribution, and that segment is ahead of plan and already making substantial improvement in cost management and attracting significant new business. We are also moving aggressively to grow our retail food segment, improve its profitability and address its disappointing same-store sales performance and operating results."
