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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Safeway (SWY) to Withdraw From Chicago by 2014

Stocks in this article: SWY

NEW YORK (TheStreet) -- Supermarket chain Safeway  (SWY) announced on Thursday it plans to exit Chicago by 2014. The "disposal" of 72 Safeway-owned Dominick's stores in the area will likely generate a cash tax benefit of between $400 million to $450 million, though this will be countered by a $375 million pension withdrawal liability to be paid over 20 years.

The decision to withdraw from Chicago is consistent with Safeway's strategy to consolidate. In June, Safeway announced it was selling its Canadian operations.

"These actions will allow us to focus on improving and strengthening our core grocery business," said CEO Robert Edwards in a statement on Thursday. "We are continuing to review all of our businesses to optimize our allocation of resources, improve sales and grow operating profits."

For the third-quarter ended September 7, Safeway reported net income of $65.8 million, compared to $157 million in the year-ago quarter. The Dominick's brand netted losses of $13.7 million in the quarter.

Safeway revised its full-year 2013 earnings guidance to between $1.67 billion to $1.7 billion, lower than its previously forecast $1.7 billion to $1.73 billion.

Shares had gained 2.5% to $31.57 by market close. In after-hours trading Thursday, shares were up 6.4%.

Written by Keris Alison Lahiff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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