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HARRIS TEETER YEAR-END, QUARTER RESULTS CLIMB

CHARLOTTE, N.C. -- Harris Teeter, a subsidiary of Ruddick Corp. here, reported increased sales and operating profit for the year and fourth quarter ended Oct. 2.r's sales for the year rose 12% to $1.58 billion, compared with $1.41 billion a year ago, while sales for the 13-week quarter increased 5.2% to $403.2 million, compared with $383.3 million. Excluding the extra week, same-store sales increased

CHARLOTTE, N.C. -- Harris Teeter, a subsidiary of Ruddick Corp. here, reported increased sales and operating profit for the year and fourth quarter ended Oct. 2.

r's sales for the year rose 12% to $1.58 billion, compared with $1.41 billion a year ago, while sales for the 13-week quarter increased 5.2% to $403.2 million, compared with $383.3 million. Excluding the extra week, same-store sales increased 7.5% for the year and 9.3% for the quarter.

Operating profit for the year rose 24.1% to $37 million, compared with $29.8 million a year ago, when the chain recorded a restructuring charge of $5.3 million. Operating profit for the quarter increased 124.3% to $9.7 million, compared with $4.3 million.

The company said operating profit increased, despite an increase in gross margins at a rate greater than sales, because the increased margins more than offset

the increased expense ratio.

Lee Wilder, a securities analyst with Robinson Humphrey, Atlanta, said she was disappointed that the chain's sales gains had not resulted in better operating results.

Harris Teeter has been reporting strong same-store sales comparisons for several quarters, Wilder said. "It's been remodeling stores over the last couple of years that have performed quite well, and it's been converting more stores to 24-hour operations, which has enabled the company to get a nice sales pickup.

"But it needs to bring those big sales down to the bottom line, and while the potential is there, I had been looking for stronger operating results."

Harris Teeter operates 139 stores in North Carolina, South Carolina, Georgia, Virginia and Tennessee. It accounted for approximately 83% of Ruddick's sales and 58% of operating profits for the year.

Ruddick's other subsidiaries are American & Efird, manufacturer and distributor of industrial sewing thread; Jordan Graphics, producer and distributor of business forms and labels, and Ruddick Investment Co., an investment manager and venture capital investor.

Ruddick said its overall sales rose 10% for the year to $1.9 billion and 5% for the quarter to $491 million.

Net income for the year fell 6.1% to $31.8 million, following the cumulative effect of accounting changes.

4TH-QUARTER RESULTS

Qtr Ended 10/2/94 10/3/93

Sales $491.4 million $468.1 million

Change +5%

Same-store +9.3%

Net Income $8.9 million $5.2 million

Change +71 %

Inc/Share 38 cents 22 cents

52 Weeks 1994 1993

Sales $1.9 billion $1.7 billion

Change +10%

Same-store +7.5%

Net Income $31.8 million $33.8 million

Change -6.1%