This Day On The Street
Continue to site
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

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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs