Safeway grocer issues 2009 guidance

PLEASANTON, Calif. - Safeway Inc. told investors Thursday that it expects to earn between $2.34 and $2.44 per share in 2009, in line with analyst expectations.

The grocery store chain released its 2009 guidance during a conference with analysts and institutional investors.

Analysts surveyed by Thomson Reuters expect the Pleasanton-based company to earn $2.39 per share for the year.

"We are focused on growing our business in this tough economic environment, as well as in the long run," Chairman, President and Chief Executive Steve Burd said in a statement. "With the freshest asset base in the supermarket industry, a differentiated offering, and ongoing investments in everyday price, we believe we are very well positioned to improve our sales momentum in 2009."

Safeway said it expects non-fuel identical-store sales to grow between 2 and 3 percent, while cash expenditures will be $1.2 billion, down from $1.6 billion in 2008.

"These results will be supported by an aggressive cost reduction effort, coupled with price reductions, to further the company's effort to lower everyday pricing," the company said in a statement.

Safeway shares climbed 58 cents, or 2.6 percent, to $22.39 in morning trading Thursday.

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