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Safeway's sale of Genuardi's lifts 3Q profit

Thursday, 11 Oct 2012 | 9:20 AM ET

NEW YORK -- Safeway Inc. says its net income rose 21 percent in the third quarter as it benefited from the sale of its Genuardi's stores.

The Pleasanton, Calif.-based company, which also operates Vons, Dominick's and other grocery chains, says it earned $157 million, or 66 cents per share, in the period. That compares with $130.2 million, or 38 cents per share, a year ago.

Excluding discontinued operations, the company earned 45 cents per share. That was higher than the 43 cents per share analysts expected.

The sale of Genuardi's resulted in a $49 million after-tax gain.

Revenue at locations open at least a year edged up 0.1 percent in the quarter. The company said gross profit declined as a result of the costs associated with its new loyalty program.

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