Albertsons Profits, Sells

The group acquiring Albertsons includes Supervalu Inc., CVS Corp. and an investor group led by Cerberus Capital Management, LP that also includes Kimco Realty, Schottenstein Realty, Lubert-Adler Partners and Klaff Realty LP. The buyers will acquire a chain with banners that include Albertsons, Acme, Shaw's, Jewel-Osco, Sav-on Drugs, Osco Drug, and Star Market, as well as Super Saver and Bristol Farms, which are operated independently.

Albertsons opened eight new stores and clossed 18 during the quarter, completing 20 remodels and finishing the quarter with a total of 2,461 stores. The chain earned $166 million, or 44 cents per diluted share, compared to reported net earnings of $107 million or 29 cents per share in the first quarter of 2005.

The company said its 2006 first quarter results were positively impacted by higher gross margins and lower expenses, including a pre-tax gain of $47 million or 8 cents per diluted share, for planned pension curtailments approved during the quarter. Total sales were $9.9 billion, essentially flat with the first quarter of 2005. Total comparable store sales decreased 0.1% and total identical store sales decreased 0.2%.

In the voting for the sale, Albertson's chairman, CEO and president Larry Johnston reported that the preliminary voting results showed approximately 98% of the total shares that voted on the approval of the transaction merger agreement voted for its approval. This number of shares that were voted represented approximately 60% of the company's common shares outstanding on April 24, the record date for the special meeting to vote on the sale.