HANNAFORD NET INCOME RISES, YET QUARTERLY GAIN DISAPPOINTS

SCARBOROUGH, Maine -- Hannaford Bros. here said sales and earnings rose in the third quarter and nine months ended Sept. 28, though quarterly income was lower than expected.

illion. Year-to-date sales increased 16.2% to $2.19 billion from $1.89 billion a year before; same-store sales increased 3.3%. Net earnings rose 1.5% to $54.08 million from $53.3 million.

Quarterly income was below expectations due to Hurricane Fran, which caused disruption and product loss at 20 North Carolina stores, and meat cost inflation in some markets, according to Hugh G. Farrington, president and chief executive officer.

3RD-QUARTER RESULTS

Qtr Ended 9/28/96 9/30/95

Sales $773.3 million $653.9 million

Change + 18.3%

Same-store + 3.6%

Net Income $19.9 million $19.7 million

Change + 0.9%

Inc/Share 47 cents 47 cents

36 Weeks 1996 1995

Sales $2.19 billion $1.89 billion

Change + 16.2%

Same-store + 3.3%

Net Income $54.08 million $53.3 million

Change + 1.5%