EAGLE REPORTS LOSSES IN FOURTH QUARTER, YEAR

MILAN, Ill. -- Eagle Food Centers here reported decreased sales and a loss for the year and the fourth quarter ended Jan. 29.

lion and 2.2% for the quarter to $269.5 million. Same-store sales declined 3.4% for both the year and the fourth quarter.

Eagle said a pretax charge of $17 million to cover the cost of closing five stores contributed to the loss in the quarter and the year. An extraordinary charge of $4 million related to early debt retirement also contributed to the full-year loss.

The five stores closed during the fourth quarter were sold in the first quarter of the current year, said Herbert T. Dotterer, vice president and chief financial officer. Eagle closed nine stores during the year and intends to close 13 more this year, he said.

It also opened three new Eagle Country Warehouse stores during the year and plans to open three more Country Warehouse units and one Country Market this year.

Howard Goldberg, a high-yield analyst with Goldman Sachs, New York, said Eagle is investing heavily in the Country Market format because of its better gross margins. With the anticipated closing of 13 stores this year, Goldberg said, it indicates Eagle "is weeding out its losers." This should eliminate stores that have been a drag on earnings, he said.

Eagle is still experiencing severe competitive pressures, which include the opening of five Super Kmart Centers in the Chicago area, he said.

YEAR-END RESULTS

Qtr. Ended 1/29/94 1/30/93

Sales $269.5 million $275.7 million

Change -2.2%

Same-store -3.4%

Net Income ($10.5 million) $2.5 million

Inc/Share (94 cents) 23 cents

Year 1993 1992

Sales $1.06 billion $1.08 billion

Change -1.8%

Same-store -3.4%

Net Income ($10.1 million) $8.2 million

Inc/Share (91 cents) 74 cents