July 18 Supermarket chain Safeway Inc on
Thursday reported higher quarterly profit but revised its
full-year forecast slightly lower.
The company, which recently announced the sale of its Canada
assets and spun off its Blackhawk gift card unit, reported
income from continuing operations of $68.1 million, or 28 cents
per share, for the second quarter ended June 15. That compared
with $47.6 million, or 20 per share, a year earlier.
Excluding the impact of increased legal reserves, Blackhawk
initial public offering expenses and a gain from the sale of
investments, profit from continuing operations in the latest
quarter was 24 cents per share.
After adjusting for discontinued operations, the Blackhawk
IPO and other items, the company set its forecast at the lower
end of its prior outlook for earnings of $2.25 to $2.45 per
share. It did not give details.
Safeway, the No. 2 chain behind Kroger Co, also
operates Vons and Dominick's stores.
In June, Safeway said it was selling its Canadian assets to
grocery chain Sobeys in a $5.7 billion deal and use the proceeds
to pay down debt and buy back shares.
In April, California-based Safeway took Blackhawk Network
Holdings Inc public and continues to exercise control
over the company it created in 2001.
Safeway shares added 13 cents to $24.78 in early trading.