BOISE — Albertson's said its fiscal third-quarter profit rose less than expected and fourth-quarter earnings per share would miss analysts' estimates by one third as the No. 2 U.S. grocer struggles to cut costs.
Profit from operations rose slightly to $187 million, or 45 cents a share, from $185 million, or 44 cents, a year ago. Sales in the quarter ended Nov. 2 rose to $8.99 billion from $8.98 billion, according to a release distributed by Business Wire.
The company lowered its fourth-quarter profit forecast to 50 cents a share. The average estimate of analysts surveyed by First Call/Thomson Financial is 75 cents.
Albertson's sales have been hurt by competition from Wal-Mart Stores Inc. and other chains such as Costco Wholesale Corp. that offer lower prices. Costs have risen as Albertson's remodeled Lucky supermarkets in California.