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Sysco 1st-qtr net income flat amid restructuring

The Associated Press

NEWS: Food distributor Sysco Corp. said Monday its fiscal first-quarter net income was nearly flat as it dealt with restructuring and other costs, but adjusted results beat expectations and shares rose

DETAILS: Many of Sysco's customers are casual dining chains, which are dealing with a tough competitive environment as consumers go out to eat less and the number of outlets proliferate.

NUMBERS: Net income edged down slightly to $285.6 million, or 48 cents per share, for the three months ended Sept. 28. That compared with $286.6 million, or 49 cents per share, last year.

Adjusting for one-time restructuring charges, net income was 49 cents per share in the recent quarter. Excluding other business streamlining costs, net income was 56 cents per share.

Analysts, on average, expected 47 cents per share, according to FactSet.

Revenue rose 6 percent to $11.71 billion from $11.09 billion last year. Analysts expected $11.62 billion.

FUTURE: CEO Bill DeLaney said the company is on track to achieve financial objectives for fiscal 2014. The company said in August that earnings performance trends are expected to gradually improve during the fiscal year, but has not offered any specific guidance.

STOCK: Shares rose $1.47, or 4.5 percent to $34.03 in morning trading. The stock has been choppy since the start of the year, but is now up about 8 percent in the past month.