Earnings Jump at Giant Food's Parent Company
Royal Ahold, a Dutch supermarket operator and owner of Giant Food, said today its second-quarter earnings jumped on the sale of several assets, including a food distribution unit based in the Washington area. Profit for the quarter ended July 15 rose to $3.04 billion from $298 million a year ago, according to a statement from the company. Revenue increased to $9 billion.
Last month, Ahold completed its sale of Columbia-based U.S. Foodservice to Kohlberg Kravis Roberts and Clayton, Dubilier & Rice for $7.1 billion, recording a gain of $2.73 billion on ther transaction.
Sales at the the company's Stop & Shop and Giant Food Landover division rose 1.9 percent, but operating income dropped 27.8 percent. Ahold attributed the declines to restructuring charges that included costs for closing 10 stores in New Jersey.
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