said it plans to sell 110 retail grocery operations, and issued new earnings guidance for the third and fourth quarter of 2002 and full year of 2003.
The Dallas-based company said it expects to lose around 5 cents a share or post flat earnings for the third quarter, compared with earnings of 47 cents a share in the year-ago period. Earnings before interest, tax, depreciation and amortization are expected to be between $65 million and $70 million for the period. Fleming plans to counter third-quarter sales shortfalls with cost cuts, which it expects to total $40 million.
In the fourth quarter, Fleming expects to earn between 35 cents and 45 cents a share, compared with 64 cents a year ago. EBITDA is expected to be between $95 million and $105 million.
In 2003, the company expects to earn between $1.95 and $2.05 a share.
Fleming said it expects to get $450 million from the sale of the retail operations, and will use the money to reduce debt.