Fleming (FLM) said it plans to sell 110 retail grocery operations, and issued new earnings guidance for the third and fourth quarter of 2002 and full year of 2003.
The Dallas-based company said it expects to lose around 5 cents a share or post flat earnings for the third quarter, compared with earnings of 47 cents a share in the year-ago period. Earnings before interest, tax, depreciation and amortization are expected to be between $65 million and $70 million for the period. Fleming plans to counter third-quarter sales shortfalls with cost cuts, which it expects to total $40 million.
In the fourth quarter, Fleming expects to earn between 35 cents and 45 cents a share, compared with 64 cents a year ago. EBITDA is expected to be between $95 million and $105 million.
In 2003, the company expects to earn between $1.95 and $2.05 a share.Fleming said it expects to get $450 million from the sale of the retail operations, and will use the money to reduce debt.