Newspaper article THE JOURNAL RECORD

Fleming Profits Fall 9.1 Percent to $13.7 Million

Newspaper article THE JOURNAL RECORD

Fleming Profits Fall 9.1 Percent to $13.7 Million

Article excerpt

A decrease of 9.1 percent in net income to $13.7 million was reported Wednesday for the second fiscal period ended July 9 by the Fleming Companies Inc. of Oklahoma City.

The net income was down from $15 million for the same period a year ago. Per share, Fleming earnings were 51 cents, down 10.5 percent from 57 cents last year. Sales, however, increased 3.2 percent to $2.02 billion from $1.96 billion last year.

The quarterly results were reduced by two factors, said the the report by Fleming, which is headed by E. Dean Werries as president and chief executive officer and R.D. Harrison as chairman.

- One was a labor stoppage in northern California, reducing earnings by 8 cents per share.

- The other an increase in loss reserves for the firm's unconsolidated insurance operation, reducing earnings by 4 cents per share.

For the first fiscal 28 weeks ended July 9, Fleming reported a net income of $34.9 million, up 3 percent from $33.9 million for the same period a year ago. Earnings per share were up 2.3 percent to $1.31 from $1.28 last year.

First half revenues reached $4.66 billion, up 2 percent from $4.57 billion last year.

Fleming, the nation's largest wholesale food distributor following two acquisitions in July after the second fiscal period, maintained near normal service to more than 1,100 affiliated retail stores in northern Californa since June 9, the firm said.

At that point, workers walked off the job at Fleming distribution centers in that area. The stoppage continues while talks are being held with representatives of the striking workers, Fleming said.

Meanhile, operating units in the Eastern, Southern and Midwest regions performed well, Fleming said, with warehouse productivity up. Tons per manhour have increased 4.1 percent during the first six months, the firm said.

Divisions in Oklahoma and Texas, which operated in a depressed economy during recent years, recorded significant gains, Fleming said, while the Phoenix division continued a turnaround with new customers and improving operations. …

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