This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Sysco Reports Second Quarter Net Earnings Of $221 Million And Diluted EPS Of $0.38 ($0.40 After Adjusting For Certain Items)

Stocks in this article: SYY

1 See Non-GAAP Reconciliations below for more information.

Second Quarter Fiscal 2013 Summary

Sales for the second quarter were $10.8 billion, an increase of 5.4% compared to sales in the same period last year. Food cost inflation was 2.5%, as measured by the estimated change in Sysco's product costs, driven mainly by inflation in the poultry and meat categories. In addition, sales from acquisitions (within the last 12 months) increased sales by 1.1%, and the impact of changes in foreign exchange rates for the second quarter increased sales by 0.3%. Case volume for the company's Broadline and SYGMA operations combined grew 2.8% during the quarter, including acquisitions, and approximately 1.8%, excluding acquisitions.

Gross profit for the second quarter was $1.9 billion, an increase of 3.9%, compared to the prior year. Operating expenses in the second quarter increased $116 million, or 8.2%, compared to operating expenses in the prior year period. This was due mainly to a $45 million increase in gross business transformation expenses and a $17 million increase in payroll expense. In addition, operating expenses reflect $22 million in charges related to certain items. Excluding certain items and business transformation expenses, adjusted operating expenses increased 3.7%.

Operating income was $383 million in the second quarter, decreasing $44 million, or 10.4% compared to operating income in the prior year. Excluding certain items and business transformation expenses, adjusted operating income increased 4.6%.

Net earnings for the second quarter were $221 million, a decrease of $29 million, or 11.5%, compared to the prior year. Diluted EPS in the second quarter of fiscal 2013 was $0.38, which was 11.6% lower compared to last year's second quarter. Excluding certain items and business transformation expenses, adjusted diluted EPS was $0.49, which was an increase of 4.3%, compared to the prior year.

First Half Fiscal 2013 Summary

Sales for the first half of fiscal 2013 were $21.9 billion, an increase of 5.1% compared to sales in the same period last year. Food cost inflation was 2.3%, as measured by the estimated change in Sysco's product costs, driven mainly by inflation in the poultry and meat categories. In addition, sales from acquisitions (within the last 12 months) increased sales by 0.8%, and there was no year-over-year impact from foreign exchange rates. Case volume for the company's Broadline and SYGMA operations combined grew 3.0% during the first half, including acquisitions, and approximately 2.4%, excluding acquisitions.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs