PUBLIX REPORTS NET OFF SLIGHTLY IN QUARTER

CAROL EMERT

LAKELAND, Fla. (FNS) -- Publix Super Markets here reported a slowdown in sales growth and lower net earnings for the first quarter ended March 26, according to a report filed with the Securities and Exchange Commission.

Earnings for three months fell 1.1% to $77.2 million from $78 million in the comparable period last year.

Sales increased 10.6% in the quarter to $2.4 billion from $2.2 billion in 1994's first quarter. Sales increased 11.4% in last year's first quarter and 16% overall in 1994.

Comparable store sales rose 2.8% in the quarter, compared to 5.1% in the first quarter last year and 5.2% overall for 1994.

Tina Johnson, treasurer, attributed the slowdown to fewer baseball fans visiting Florida for spring training in reaction to the players' strike settled earlier this year, as well as a decline in Canadian vacationers.

Johnson noted that 1995's first-quarter earnings were the second highest of any quarter in the company's history, but when viewed against the highest -- the first quarter of 1994 -- they showed a decline. Last year's first quarter also included a $5.6 million gain related to insurance claims from Hurricane Andrew, she added.

Because the slowdown was unexpected, Publix did not reign in its first-quarter costs, Johnson said. Operating and administrative expenses ballooned 14.8% to $456.6 million from $397.6 million in the corresponding period last year.

Meanwhile, the cost of merchandise sold, which includes store occupancy, storage and transportation expenses, grew 10.1% during the quarter to $1.8 billion from $1.7 billion in the comparable 1994 period.

Earnings per common share rose to 34 cents on 230.3 million shares in the first quarter from 33 cents on 236.1 million shares in the corresponding 1994 quarter. Johnson acknowledged that some large stockholders have been selling part of their holdings back to the company.

One such shareholder, a foundation established by Publix's founder, was forced to sell shares because an IRS rule forbids a foundation from owning more than 2% of a company closely related to the foundation's benefactor. That transaction will show up in second-quarter figures, Johnson said.

1st-QUARTER RESULTS

Qtr Ended 4/1/95 3/26/94

Sales $2.4 billion $2.2 billion

Change 10.6%

Same-store 2.8%

Net Income $77.2 million $78 million

Change -1.1%

Inc/Share 34 cents 33 cents