SEATTLE--(Business Wire)--
Starbucks Coffee Company (NASDAQ:SBUX) today issued a response to the decision
by Moody`s Investors Service to downgrade the Company`s credit ratings.
Troy Alstead, executive vice president, chief financial officer and chief
administrative officer, issued the following statement:
"As we noted on our April 29, 2009 earnings call, Starbucks remains in a very
solid financial position. The Company continues to generate strong operating
cash flow and maintain strong liquidity. For the first six months of FY 2009,
Starbucks generated $715 million in cash from operations and approximately $479
million in free cash flow. Starbucks defines free cash flow as cash flow from
operations less capital expenditures with capital expenditures for the first
half of fiscal 2009 of approximately $237 million the period. Also during that
period, the Company reduced its short-term borrowings by $487 million to $226
million and we expect to substantially reduce the outstanding balance during the
remainder of the calendar year.
We expect to deliver operating cash flow in excess of $1 billion in fiscal 2009,
as we have for each of the past three years. At the same time, we continue to
focus on cost savings throughout our organization and we delivered $120 million
of permanent cost savings in Q2, following the $75 million produced in Q1. We
expect to deliver approximately $150 million of such savings in Q3 and $175
million in Q4, for a total cost reduction exceeding $500 million in fiscal 2009.
We are ahead of target with our initiatives to position the Company for
sustainable, profitable growth, and the results of those efforts are reflected
in Starbucks second-quarter financial performance. Finally, despite the
difficult consumer environment, Starbucks second quarter non-GAAP earnings
exceeded the First Call consensus estimate."
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing
and roasting the highest quality arabica coffee in the world. Today, with stores
around the globe, the company is the premier roaster and retailer of specialty
coffee in the world. Through our unwavering commitment to excellence and our
guiding principles, we bring the unique Starbucks Experience to life for every
customer through every cup. To share in the experience, please visit us in our
stores or online at www.starbucks.com.
Starbucks Coffee Company
Media:
Deb Trevino, 206-318-7100
press@starbucks.com
or
Investors:
JoAnn DeGrande, 206-318-7118
investorrelations@starbucks.com
Copyright Business Wire 2009
