Slight sales decline at Ruddick A&E technical textiles
02 Nov '07
4 min read
Ruddick Corporation reported that consolidated sales for fiscal 2007 increased by 11.4% to $3.64 billion from $3.27 billion in fiscal 2006. Sales for the fiscal fourth quarter ended September 30, 2007 increased by 12.6% to $944 million from $838 million in the fourth quarter of fiscal 2006.
The increase in sales for both fiscal 2007 and the fourth quarter was attributable to sales increases at the Company's Harris Teeter supermarket subsidiary that were offset, in part, by a slight sales decline at the Company's American & Efird (“A&E”) sewing thread and technical textiles subsidiary.
The Company reported consolidated net income of $80.7 million, or $1.68 per diluted share for fiscal 2007, an increase of 11.5% from the $72.3 million, or $1.52 per diluted share reported for fiscal 2006.
Consolidated net income for the fiscal fourth quarter ended September 30, 2007, was $21.2 million, or $0.44 per diluted share, an increase of 18.4% from the $17.9 million, or $0.37 per diluted share, in the fourth quarter of fiscal 2006.
The increase in earnings over the prior fiscal year and quarterly period was driven by improved operating profit at Harris Teeter.
As previously disclosed, results for fiscal 2006 included net pre-tax gains totaling $4.7 million (income of $2.2 million for life insurance proceeds, $1.5 million of expense related to new Supplemental Executive Retirement Plans and a $4.0 million gain from the sale of a real estate investment).
These transactions effectively increased prior year net income by $3.8 million or $0.08 per diluted share for fiscal 2006.
Harris Teeter sales for fiscal 2007 increased by 12.9% to $3.30 billion from $2.92 billion in fiscal 2006. Sales for the fourth quarter of fiscal 2007 were $861.1 million, an increase of 14.7% from the $750.9 million in the fourth quarter of fiscal 2006.
The increase in sales was attributable to new store opening activity, partially offset by store closings and divestitures, and comparable store sales increases of 4.87% for the year and 5.91% for the fourth quarter.
During fiscal 2007, Harris Teeter opened 19 new stores (7 of which were opened in the fourth quarter), closed 7 older stores (2 of which were closed in the fourth quarter) and completed the major remodeling of 9 stores (6 of which were expanded in size). The Company operated 164 stores at September 30, 2007.
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