PLEASANTON, Calif. (AP) — Safeway is posting a net loss for the first quarter due to higher costs and acquisition expenses.
The grocery-store chain is being acquired by an investment group in a deal worth about $7.64 billion. The deal, which combines Safeway and Albertsons, is expected to close in the fourth quarter.
The company says it lost $76.5 million, or 34 cents per share in the three months ended March 22. That compares with net income of $118.9 million, or 49 cents per share a year ago. Excluding one-time items, net profit totaled 6 cents per share. Analysts expected adjusted net income of 18 cents per share.
Revenue rose 1 percent to $8.26 billion from $8.18 billion last year. Analysts expected $8.26 billion.