Supervalu returns to profit in 4Q, beats Street

MINNEAPOLIS (AP) -- Supervalu returned to a profit in its fourth quarter as the grocer distanced itself from the exorbitant costs and charges it booked during the same period last year.

Its beat Wall Street expectations for both profit and revenue and shares climbed 6 percent before the opening bell Wednesday.

Supervalu has been reshaping itself, selling off five of its supermarket chains to better focus on Save-A-Lot and smaller regional chains as competition in the supermarket industry grows increasingly fierce.

For the three months ended Feb. 22, Supervalu Inc. earned $26 million, or 10 cents per share. That compares with a loss of $1.41 billion, or $6.65 per share, a year earlier.

The company recorded $8 million in costs and charges during the most recent quarter, down sharply from $149 million taken last year.

Stripping out severance-related costs and other items, earnings from continuing operations were 18 cents per share.

Analysts, on average, expected earnings of 14 cents per share, according to a FactSet poll.

Revenue for the Minneapolis company edged up 1 percent to $3.95 billion from $3.9 billion. Wall Street called for $3.87 billion in revenue.

At Save-A-Lot stores open at least a year, sales climbed 2.1 percent. This figure is a key gauge of a retailer's health because it excludes results from locations recently opened or closed.

For the full year, Supervalu earned $182 million, or 70 cents per share. A year earlier the company lost $1.47 billion, or $6.91 per share.

Adjusted earnings from continuing operations were 58 cents per share.

Annual revenue rose slightly to $17.16 billion from $17.14 billion.

Supervalu's stock gained 39 cents to $7.15 before the market open.