Exhibit 99.1
OCTOBER 30, 2002 FOR IMMEDIATE RELEASE
MEDIA CONTACT: ERTHARIN COUSIN, ALBERTSONS, INC. (208) 395-6392
INVESTOR CONTACT: RENEE BERGQUIST, ALBERTSONS, INC. (208) 395-6622
ALBERTSONS PROVIDES GUIDANCE FOR THIRD QUARTER 2002
BOISE, Idaho-Albertsons, Inc. (NYSE: ABS) announced today that a steeper than
expected sales decline, which accelerated toward the end of the third quarter,
would likely cause third quarter profits to be 5% - 10% below current guidance.
The Company had anticipated quarterly earnings per share from continuing
operations, adjusted for goodwill amortization, of $0.52, but now expects
profits to be in a range of $0.47 - $0.49 per share, up 0% - 5% from last year
on the same basis. Identical store sales for the quarter are now expected to
decline approximately 2% versus last year's third quarter.
Larry Johnston, Chairman and CEO, said, "escalating competitive activity during
the quarter coupled with declining consumer confidence are the main factors that
are now leading us to predict a worse than anticipated sales and profit
picture."
Mr. Johnston added, "we do not expect this tough environment to improve in the
near term. Consequently, we plan to invest more heavily in driving sales in the
coming quarter as well as accelerate our aggressive cost cutting campaign." The
Company now expects full year earnings per share from continuing operations,
adjusted for goodwill amortization, in a range of $2.10 - $2.14 per share versus
prior guidance of $2.31. This new range represents an increase of 1% - 3% versus
fiscal year 2001 on the same basis.
Albertsons is one of the world's largest food and drug retailers, with annual
revenues of approximately $38 billion. Based in Boise, Idaho, the Company
employs more than 200,000 associates and operates approximately 2,300 retail
stores in 31 states, under banners including Albertsons, Jewel-Osco, Acme,
Sav-on Drugs, Osco Drug, Albertsons-Osco, Albertsons-Sav-on, Max Foods and Super
Saver.
The Company will host an analyst conference call Thursday, October 31, 2002 at
1:00 p.m. (MST). The call will be webcast on the Albertsons web site
www.albertsons.com and on www.videonewswire.com. A recorded replay will also be
available on both web sites for approximately one week. In addition, a telephone
replay will be available through PostView with Global Crossing, beginning at
3:00 p.m. (MST) Thursday, October 31 and ending at 3:00 p.m. (MST) Friday,
November 1, 2002. To access PostView, call 1-800-633-8284; enter reservation
number 21015054 and follow instructions. For calls placed outside U.S., dial
1/402-977-9140.
Certain statements contained in this press release, including statements
regarding the Company's expected financial performance, are forward-looking
information as defined in the Private Securities Litigation Reform Act of 1995.
In reviewing such information it should be kept in mind that actual results may
differ materially from those projected or suggested in such forward-looking
information. This forward-looking information is based on various factors and
was derived using various assumptions. Many of these factors have previously
been identified in filings or statements made by or on behalf of the Company.
Important assumptions and other important factors that could cause actual
results to differ materially from those set forth in the forward-looking
information include changes in the general economy, changes in interest rates,
changes in consumer spending, actions taken by competitors, particularly those
intended to improve their market share, and other factors affecting the
Company's business in or beyond the Company's control. These factors include
changes in the rate of inflation, changes in state or federal legislation or
regulation, adverse determinations with respect to litigation or other claims
(including environmental matters), labor negotiations, the cost and stability of
energy sources, the Company's ability to recruit, retain and develop employees,
its ability to develop new stores or complete remodels as rapidly as planned,
its ability to implement new technology successfully, stability of product
costs, the Company's ability to integrate the operations of acquired or merged
companies, the Company's ability to execute its restructuring plans, and the
Company's ability to achieve its five strategic imperatives.
Other factors and assumptions not identified above could also cause the actual
results to differ materially from those set forth in the forward-looking
information. The Company does not undertake to update forward-looking
information contained herein or elsewhere to reflect actual results, changes in
assumptions or changes in other factors affecting such forward-looking
information.
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