KROGER SALES HIT RECORD, NET RISES IN THIRD QUARTER

CINCINNATI -- Kroger Co. here said sales hit record levels for the third quarter ended Oct. 3.

llion for the year to date, while comparable-store sales, including expansions and relocations, increased 3.6% in the third quarter. The company did not release comparable-store sales for the year to date.

Net income for the quarter, excluding one-time expenses and an accounting change, rose 29% to $124.4 million, compared with $96.6 million a year ago. Net income for the 40 weeks increased 21% to $358 million, compared with $297 million last year.

Kroger said earnings before interest, taxes and depreciation rose 13.5% to $406.9 million for the period, compared with $358.5 million a year ago; and EBITD for the year-to-date, excluding one-time expenses incurred in the first half of 1998, rose 10% to $1.1 billion, compared with $1 billion for the year-ago period.

According to Joseph Pichler, Kroger's chairman and chief executive officer, "Consolidation of administrative functions, coordinated procurement and logistics investments have clearly helped us achieve significant economies of scale."

3RD-QUARTER RESULTS

Qtr Ended 10/3/98 10/4/97

Sales $8.0 billion $7.7 billion

Change 4.4%

Same-store 3.6%

Net Income $124.4 million $96.6 million

Change 29%

Inc/Share 45 cents 37 cents

40 Weeks 1998 1997

Sales $20.9 billion $20.1 billion

Change 4.0%

Same-Store N/A

Net Income $358.0 million $297.0 million

Change 21%

Inc/Share $1.31 $1.10