CINCINNATI -- Kroger Co. here said last week it had record sales and operating cash flow for the year and fourth quarter ended Dec. 28.
g the effect of a six-week strike at King Soopers, Denver, or 0.6% including the strike's effect.
For the 12-week fourth quarter, net income increased 18.9% to $125.4 million -- following an extraordinary loss of $84.3 million for prepayment of debt -- while sales increased 5.8% to $6.2 billion and same-store sales rose 4%.
Operating cash flow rose 6.7% to $1.2 billion for the year and 12% to $353.6 million for the quarter.
Joseph A. Pichler, chairman and chief executive officer, said the company's results reflect consistent improvement in sales, earnings and operating cash flow despite competitive new-store openings during 1996 "as strong as we've experienced in recent years."
He said the effect of those openings was offset by Kroger's broad geographic base and its expense control programs.
Capital expenditures during 1996 totaled approximately $734 million -- about the same as in 1995 -- which was spent on opening, expanding or relocating 116 stores, increasing overall food-store square footage by 6.7%.
The company said it expects to spend $850 million on capital expenditures in 1997, and over the next three years it expects to expand its store base by about 100 projects a year.
4TH-QUARTER RESULTS
Qtr Ended 12/28/96 12/30/95
Sales $6.2 billion $5.9 billion
Change + 5.8%
Same-store + 4.0%
Net Income $125.4 million $105.5 million
Change + 18.9%
Inc/Share 95 cents 84 cents
52 Weeks 1996 1995
Sales $25.2 billion $23.9 billion
Change + 5.2%
Same-store + 0.6%
Net Income $349.9 million $302.8 million
Change + 15.5%
Inc/Share $2.65 $2.38
Including the effect of a six-week strike-lockout at 80 King Soopers stores in the Denver area. Excluding those stores, same-store sales for the quarter were up 1%.
