Newspaper article THE JOURNAL RECORD

Fleming Net Income Falls 34.6% to 4-Year-Low in '86/Despite Record Sales

Newspaper article THE JOURNAL RECORD

Fleming Net Income Falls 34.6% to 4-Year-Low in '86/Despite Record Sales

Article excerpt

A 34.6 percent decrease in net income to a four-year-low $39.3 million, or $1.80 per share, was reported Tuesday for 1986, despite record sales, by Fleming Companies Inc. of Oklahoma City.

It was the lowest annual net income for Fleming since 1982, when the company reported net income of $29.3 million. It was also the first time since 1970 that Fleming did not post record earnings.

The net income for 1986 was down from $60.1 million, or $2.79 per share, in 1985. Sales for 1986 totaled a record $7.6 billion, up 7.9 percent from $7.09 billion in 1985.

For the fourth quarter of 1986, Fleming reported net income of $2.9 million, or 13 cents per share, down 83.3 percent from $17.1 million, or 79 cents per share, in the fourth quarter of 1985. Sales for the quarter totaled $1.89 billion, up 4.1 percent from $1.81 billion.

Fourth quarter earnings were reduced by an after-tax charge of $10.9 million, or 50 cents per share, incurred as the result of a previously announced restructuring plan.

The plan primarily covers certain operations in the Southeast including the closing of several company-owned retail stores, the net cost of closing a distribution center in Richmond, Calif., and the write-down of assets related to other retail investment.

The restructuring will improve both operating efficiency and prospects for the future, according to a prepared statement by Fleming.

Until the 1986 decline in net income, Fleming had recorded strong growth in the 1980s, with net income climbing 159.1 percent from $23.19 million in 1980 to $60.08 million in 1985.

Fleming has continued to post record high revenues on an annual basis. Since 1980, revenues have increased 142 percent from $3. …

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