FOOD LION EARNINGS RISE IN YEAR; MARKETING CITED

SALISBURY, N.C. -- Food Lion here said its expansion and remodeling program, coupled with an aggressive marketing campaign, boosted earnings for the year ended Jan. 2.

or the 16-week fourth quarter, sales decreased 1.9% to $3.2 billion while same-store sales rose 3.7%. Net earnings for the quarter rose 3.31% to $84.5 million, the company said.

Food Lion said 1998 earnings figures were adjusted to reflect a tax refund and related interest income following an audit and changes in the recording of sales tax related to the company's loyalty-card program. In 1997, the company had an additional week of sales in the fourth quarter and adjusted earnings to reflect store closings.

With these adjustments, 1998 earnings grew 22% on a 6% increase in sales, on a comparable basis. Fourth-quarter volume was up 8% to $3.2 billion and profit climbed 20% on an adjusted basis.

4th-QUARTER RESULTS

Qtr Ended 1/2/99 1/3/98

Sales $3.2 billion $3.26 billion

Change - 1.9%

Same-store 3.7%

Net Income $84.5 million $87.3 million

Change - 3.31%

Inc/Share 18 cents 19 cents

52 Weeks 1998 1997

Sales $10.3 billion $10.19 billion

Change 1%

Same-store 2.6%

Net Income $272.6 million $172.2 million

Change 58%

Inc/Share 57 cents 37 cents

Does not reflect adjustments the company made for a tax refund and changes in recording sales tax, as listed in the story.