Employee clothing & apparel provider ARAMARK Corporation reported record sales of $2.9 billion for the first quarter of 2006, a 7 percent increase over the prior year quarter. Organic sales growth was 6 percent.
Diluted earnings per share were up 11 percent to $0.42 excluding an $0.08 benefit from a favorable tax adjustment, and were up 16 percent excluding both the tax adjustment and the $0.02 impact from the expensing of employee stock options. Reported net income was $93 million and diluted earnings per share were $0.50.
First-Quarter Results
Subsequent to the end of the first quarter, ARAMARK completed the acquisition of a food service company in China, further expanding its service capabilities and scale in this dynamic economy. ARAMARK now has more than 8,000 employees in China providing an array of food and facilities services.
Demonstrating the company's leadership in serving sports and entertainment venues globally, ARAMARK will manage food services at several German stadiums for the FIFA World Cup this summer. The FIFA World Cup is the world's premier soccer event and one of the world's most popular sporting events, with anticipated total attendance of more than two million.
In the Uniform and Career Apparel – Rental segment, sales increased 7 percent to $296 million.
Organic growth was 6 percent. Segment operating income increased 8 percent to $33.1 million, despite significantly higher energy costs.
Sales in the Uniform and Career Apparel – Direct Marketing segment were $125 million, a 1 percent decrease from the prior year quarter. Segment operating income declined to $7 million.
marketing@alchempro.com
