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Grocer Supervalu Inc.'s fiscal fourth-quarter
net income dipped 2 percent, partly weighed down by softer sales
and store closings.


      The earnings topped Wall Street expectations. Supervalu's stock
surged $1.22, or 13.4 percent, to $10.30 in premarket trading.


      The operator of Albertsons, Jewel-Osco and Save-A-Lot chains
also provided a 2012 earnings outlook on Thursday in range of Wall
Street's expectations.


      Supervalu's net income fell to $95 million, or 44 cents per
share, for the period ended Feb. 26 from $97 million, or 46 cents
per share, a year ago.


      But the performance still beat the 33 cents per share expected
by analysts surveyed by FactSet.


      The grocery industry has grown intensely competitive during the
weak economy as markets try to lure shoppers. They've relied
heavily on promotions to do this but it has come at the expense of
their already-thin profit margins.


      Supervalu, which launched a turnaround plan more than a year
ago, has worked hard to make changes. In addition to store
closings, the company has brought in new management, cut costs and
lowered debt.


      Company leaders say they are keeping tight controls on costs and
have learned from missteps in the past.


      "Our transformation initiatives helped us execute more
effective promotions that contributed to stronger than anticipated
results," CEO and President Craig Herkert said in a statement.


      The current quarter's results included charges totaling 31 cents
per share tied to store closings, employee-related costs and an
asset-impairment charge. These were offset by a gain on the sale of
one of its businesses.


      Revenue fell 6 percent to $8.66 billion, missing Wall Street's
estimate of $8.73 billion.


      Revenue at stores open at least a year dropped 5 percent. This
figure is a key gauge of a retailer's health because it excludes
revenue from stores opened or closed during the year.


      Fourth-quarter retail net sales declined to $6.7 billion from
$7.2 billion, while supply chain services net sales were flat at $2
billion.


      For the year, Supervalu lost $1.51 billion, or $7.13 per share.
That compares with earnings of $393 million, or $1.85 per share, in
the previous year.


      Adjusted earnings fell to $1.39 per share from $2.03 per share.
Annual revenue dropped 8 percent to $37.53 billion.


      Supervalu said Thursday it expects 2012 earnings of $1.20 to
$1.40 per share. Analysts expected $1.27.


      The company has more than 4,000 stores and about 140,000
employees.

Gallery

Supervalu's recent performance not so super

Grocer Supervalu Inc.'s fiscal fourth-quarter
net income dipped 2 percent, partly weighed down by softer sales
and store closings.


Supervalu 4Q net income slips on softer sales

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