Loblaws Q3 profit up 18%

Loblaws sales and profits are up! The following is for those of you who may believe that Loblaws isn't doing well financially. This is a report from the CBC and the $258 million figure is Loblaws profit for the quarter!

Loblaws Q3 profit up 18%
Last Updated Fri, 19 Nov 2004 16:23:07 EST

TORONTO - Grocery retailer Loblaw Companies Ltd. said Friday its third-quarter earnings grew by more than 18 per cent over the previous year.

The Toronto-based company said it made $258 million (94 cents a share), up from $218 million (79 cents a share) a year earlier.

Six analysts surveyed by Thomson First Call had forecast Loblaws earnings would average 92 cents in the quarter.

Sales for the third quarter increased 6 per cent to $8.1 billion from $7.7 billion in 2003, and the company said that all regions across the country experienced sales growth over the prior year.

The company also that sales growth in non-food categories continued to surpass that of food categories in the third quarter, a trend seen in previous quarters.

Loblaws said its same-store sales grew by 1.5 per cent in the quarter.

Following the end of the quarter, Loblaws said it launched reorganizations of its merchandising, procurement and operations groups.

"The company believes these changes will make it a more efficient and effective operation, helping to better serve its customers and fortify its position as a strong, competitive force in Canadian retailing," the firm said.

Loblaws expects continued good sales and net earnings growth for the remaining quarter of 2004. "We expect this trend to continue into 2005," Loblaws said.

Shares of the Loblaws were off 51 cents at $68.80 on the TSX.

Written by CBC News Online staff
Headlines: Business