MONTVALE, N.J. -- Ambitious restructuring efforts throughout fiscal 1999 resulted in net profits and strong comparable-store sales for A&P here, Christian Haub, president and chief executive officer for A&P, said last week.
lion loss in 1998. Excluding restructuring charges from both years, 1999 income was $74 million, up 44% from $51.3 million.
For the quarter, earnings per share excluding special items were 51 cents, exceeding First Call/Thompson Financial estimates by a penny, the company said.
Sales were $2.42 billion for the quarter, down slightly from $2.43 billion. For the year, sales dipped 0.3% to $10.15 billion from $10.18 billion. Sales were affected by the closure or sale of 142 stores as part of A&P's "Project Great Renewal" restructuring, which began in December 1998. A&P opened 55 new stores and completed 59 major renovations in fiscal 1999.
"During the course of 12 months we replaced about $1 billion in sales that were taken out of the company as part of Project Great Renewal," Haub said.
Comparable-store sales were up 4% for the quarter and 4.5% for the year, Haub added, with the company's Waldbaum's and Super Fresh divisions leading the way.
"Results at Waldbaum's exceeded the benefits we had expected," Haub said. "We're looking for that to continue this year as we accelerate our store-upgrade program on Long Island." The Super Fresh division "remains a challenge," Haub added.
"We think Waldbaum's and Super Fresh are still quite a bit below where they can be," he said.
Haub said the company will spend about $500 million in fiscal 2000 on 60 store renovations and 55 to 60 new stores.
