Sysco Reports Second Quarter Net Earnings Of $258 Million, And Diluted EPS Of $0.44

HOUSTON, Feb. 7, 2011 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) today announced financial results for its 13-week second quarter ended January 1, 2011.

Second Quarter Fiscal 2011 Highlights

• Sales were $9.4 billion, an increase of 5.8% from $8.9 billion in the second quarter of fiscal 2010.
• Operating income was $437 million, a decrease of 5.5% compared to $462 million in last year's second quarter.
• Diluted earnings per share (EPS) were $0.44, including a $0.02 benefit from Corporate Owned Life Insurance (COLI). This result was 2.2% lower than last year's second quarter EPS of $0.45, which included a $0.01 benefit from Corporate Owned Life Insurance (COLI).

First Half Fiscal 2011 Highlights

• Sales were $19.1 billion, an increase of 6.6% from $17.9 billion in the first half of fiscal 2010.
• Operating income was $943 million, a decrease of 1.7% compared to $960 million in last year's first half.
• Diluted EPS was $0.95, including a $0.04 benefit from COLI. This result was 5.0% lower than last year's first half EPS of $1.00, which included a $0.05 tax benefit related to the company's IRS settlement, and a $0.04 benefit from Corporate Owned Life Insurance (COLI).

"Our financial results for the second quarter reflect the unfavorable impact of certain market conditions and operational challenges that we were unable to fully overcome in the near term. Specifically, accelerating and significant food cost inflation negatively impacted our customers' purchasing budgets, contributed to increased gross margin pressure and meaningfully increased our selling expense. In addition, higher year over year pension and fuel costs also adversely impacted our ability to grow operating earnings over the prior year," said Bill DeLaney, Sysco's president and chief executive officer. "Looking forward, we are highly focused on improving the execution of our business plan in the second half of our fiscal year and effectively implementing our strategic priorities over the long term."