Ahold Revises 2002 Earnings Outlook
ere said last week it has revised its earnings-per-share growth expectations for 2002 to 5% to 8% from the 15% growth it estimated in May. The current estimate does not include an estimated $350 million to $450 million charge related to the default last week of Velox Retail Holdings, an Argentinian company that was Ahold's partner in Disco Ahold, the company's Latin American joint venture, according to the company. Ahold said it will be required to pay approximately $490 million for Velox's shares in Disco Ahold, an amount that exceeds the fair value of the shares. Based on preliminary results, Ahold said it expects no earnings-per-share growth for the second quarter ended July 14, although the company cited strong performance at several divisions, including Stop & Shop Supermarkets, Quincy, Mass.
Court Reduces Ralphs' Fine In Sex-Harass SUIT
SAN DIEGO -- A Superior Court judge here last week reduced to $8.8 million a jury award of $30.6 million that had been handed down in April to six female employees of Ralphs Grocery Co., who claimed they were sexually harassed and verbally abused by a former Ralphs store director and that Ralphs had failed to take measures to prevent the alleged harassment. The judge said the jury award was excessive and grounds for a new trial. It was not clear last week if the plaintiffs will seek a new trial. Ralphs, based in Compton, Calif., is a division of Kroger Co., Cincinnati. The charges stemmed from a period between 1985 and 1996, before Kroger owned Ralphs.
First Whole Foods Store Organized
MILWAUKEE -- United Food and Commercial Workers Union Local 1444 here said last week workers at the Madison, Wis., store operated by Whole Foods Market, Austin, Texas, voted 65-54 in favor of unionization. The vote makes the Madison store the first in the Whole Foods chain to opt for union representation, according to the local. A Whole Foods spokeswoman commented, "We are surprised and disappointed that team members in our Madison store have voted to be represented by the UFCW."
