SYRACUSE, N.Y. -- Penn Traffic Co. here said it enjoyed record sales, cash flow and operating income for the third quarter ended Oct. 29. The company reported net income of $4.7 million for the 13-week quarter and $5.1 million for the 39 weeks, compared with losses in both periods a year ago. Earnings for the quarter included two onetime charges: a reduction in income-tax expense of $1 million, or 9 cents per share, relating to a reduction in the Pennsylvania statutory tax rate, and an extraordinary loss of $100,000, or 1 cent per share, related to early retirement of debt. Cash flow increased 8.2% to $58.2 million for the quarter and 8.7% to $166.6 million for the 39 weeks. Operating income rose 10.7% to $36.3 million for the quarter and 18.2% to $112.1 billion for the 39 weeks. Sales jumped 5.7% to $828.1 million for the quarter and 6.3% to $2.5 billion for the 39 weeks, while same-store sales rose 1.7% for the quarter and 1.4% for the 39 weeks. Gary D. Hirsch, chairman, said third-quarter results were adversely affected by the introduction of a triple coupon program by Kroger Co. in Ohio during the second half of the quarter. "Naturally we responded to this program and maintained our sales base," Hirsch noted. "Since Penn Traffic operates in a diverse market area with no single competitor operating against more than 30% of our total revenues, we were able to meet this challenge and attain record earnings." Claude J. Incaudo, president and chief executive officer, said the company opened two new stores in Upstate New York and two in Pennsylvania plus a replacement store in Ohio during the quarter. Two of the new stores here are the chain's first two P&C Markets with an expanded Plus format -- a 70,000- to 72,000-square-foot store similar to Penn Traffic's Big Bear Plus units in Ohio.
