SEAWAY 1 ST QUARTER BUILT ON DAIRY SALE, HIGH TECH

LISA A. TIBBITTS

MAUMEE, Ohio -- Seaway Food Town here credited a strong first-quarter performance to the sale of its dairy and improved information systems.

The company reported net income of $1.1 million for the period ended Nov. 26, compared with a loss of $505,000 for the year-ago period.

Sales for the quarter were up 3.4% to $134 million from $132.5 million. Same-store sales rose 3.3%.

Late last year, Seaway sold its dairy, Toledo Milk Processing, to Country Fresh Dairy, Grand Rapids, Mich., a regional milk processor. Terms of the sale were not disclosed.

Selling the dairy lowered Seaway's procurement costs and allowed it to refocus on its core business of grocery and drug retailing, the company said.

Seaway strengthened its reliance on information technology during the past year, establishing a computer network that links individual stores to headquarters. The new system has improved efficiency and lowered operating costs, Seaway said.

An electronic payment system that was recently implemented in two locations will be rolled out to other stores in the chain early this year.

1ST-QUARTER RESULTS

Qtr Ended 11/26/94 11/27/93

Sales $137 million $132.5 million

Change 3.4%

Same-store 3.3%

Net Income $1.1 million ($505,000)