Sysco 3Q Profit Falls, Meets Analysts' Estimates

HOUSTON (AP) — Sysco Corp. said Monday that its fiscal third quarter profit fell 6 percent but met analysts' estimates as it significantly reduced operating expenses.

The food service company earned $226.2 million, or 38 cents per share, for the period ended March 28, down from $240.9 million, or 40 cents per share, a year earlier. The results still managed to meet Wall Street's expectations.

Sales dropped 5 percent to $8.74 billion from $9.15 billion.

Analysts expected revenue of $8.96 million.

Sysco said it cut operating expenses by $85 million through job cuts and lower incentive pay, which was somewhat offset by increased bad debt expense.

"We continue to manage through these difficult times by focusing on our core business and supporting our customers," Vice Chairman, President and Chief Operating Officer Ken Spitler said in a statement.

Sysco runs 180 distribution plants and had sales of more than $37 billion in fiscal 2008.

The company's stock declined $1.11, or 4.6 percent, to $23.24 in midday trading. The shares have traded in a range of $19.39 to $35 over the past year.