TORONTO -- Loblaw Cos. here said U.S. sales declined 4.6% in 1993 and overall operating income suffered substantially as a result of the strike at its National Tea stores in New Orleans settled last December.
ales for the year rose 1% to $6.83 billion from $6.76 billion. The company's operating income declined 12% for the year to $37.4 million from $42.5 million in the year-ago period. Net earnings in the period rose 17.2% to $68.2 million, or 78 cents a share, from $58.2 million, or 64 cents a share.
In the quarter, corporate sales fell 22.5% to $221.8 million from $286.3 million. Operating net declined to $41.7 million from $41.9 million. Net income fell 9.7% to $19.1 million, or 23 cents a share, from $21.1 million, or 24 cents a share.
In a statement, the company said its U.S. business is back on track following the strike. "We now have competitive labor rates in New Orleans and as a result, the conventional supermarkets there are now being reformatted. When these changes are combined with several new stores in St. Louis, we expect the business in the United States will return to more normal profit levels in 1994."
