Safeway 3rd-quarter net income drops

Safeway 3rd-quarter profit falls as company says it will exit the Chicago market

Associated Press

PLEASANTON, Calif. (AP) -- Safeway says its third-quarter net income fell 58 percent, hurt by a software impairment charge, higher theft and lower property gains. I(backslash)

The grocery also says it's exiting the Chicago market by early 2014 to focus on more profitable business. It operates 72 Dominick's stores in Chicago that have been losing money.

Supermarkets have been working to cut costs as they fight off competition from discount and dollar stores.

Safeway's net income fell to $85.8 million, or 27 cents per share. That compares with $157 million, or 66 cents per share, in the prior-year quarter. Excluding a software impairment charge, net income was 30 cents per share. Analysts expected net income of 16 cents per share.

Revenue rose 1 percent to $8.62 billion. Analysts expected revenue of $8.52 billion.

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