Rising costs, charges weigh on Sysco's 4Q
HOUSTON (AP) — Escalating food costs and some charges weighed on food distributor Sysco's fiscal fourth quarter, with its net income declining 8 percent.
The company earned $309.3 million, or 53 cents per share, for the period ended June 30. A year earlier it earned $336.3 million, or 57 cents per share.
Removing pension-related costs, charges tied to a business reorganization and other items, earnings were 62 cents per share.
Analysts forecast earnings of 54 cents per share, according to a FactSet poll.
Revenue rose 6 percent to $11.05 billion from $10.43 billion. Wall Street predicted $11.04 billion.
Sysco said that food costs climbed 3.3 percent in the quarter, mostly because of price hikes for poultry, meat and canned/dry goods.
"Market conditions remained challenging throughout the year due to increasing product costs and an uneven economic recovery," President and CEO Bill DeLaney said in a statement.
For the full year, Sysco Corp. earned $1.12 billion, or $1.90 per share. That compares with earnings of $1.15 billion, or $1.96 per share, in the previous year.
Adjusted earnings were $2.13 per share.
Annual revenue increased 8 percent to $42.38 billion from $39.32 billion.
The Houston company's stock rose 4 cents to $28.88 before the market open on Monday.