Supervalu, Inc. (SVU) Misses Q1 EPS by 19c; Will Review Strategic Alternatives; Suspends Dividend

July 11, 2012 4:32 PM EDT Send to a Friend
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Supervalu, Inc. (NYSE: SVU) reported Q1 EPS of $0.19, $0.19 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $10.6 billion versus the consensus estimate of $10.81 billion.

SUPERVALU also announced that it intends to achieve an additional $250 million in administrative and operational expense reductions over the next two years by adopting an intense focus on efficiency and productivity across all functions and every part of its businesses. It expects the program to result in a leaner, more efficient organization. The savings expected to be achieved from these efforts are incremental to the $75 million in cost reductions the Company targeted for fiscal 2013. The Company noted that it has exceeded its expense saving targets in each of the past three years.

The Company’s Board and management, in conjunction with its financial advisors, Goldman Sachs and Greenhill & Co., have initiated a review of strategic alternatives to create value for the Company’s shareholders. SUPERVALU’s non-executive chairman, Wayne Sales, will oversee this process so that management can remain focused on executing the Company’s accelerated business plan. There can be no assurance that such a review will result in any transaction or any change in the Company’s overall structure or its business model.

The company also is suspending its dividend.

For earnings history and earnings-related data on Supervalu, Inc. (SVU) click here.


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