NEWS RELEASE
SYSCO Corporation ------------
1390 Enclave Parkway
Houston, Texas 77077-2099
(281) 584-1390
FOR MORE INFORMATION
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CONTACT: Toni R. Spigelmyer
Assistant Vice President,
Investor and Media Relations
(281) 584-1458
SYSCO EXPECTS STRONG SECOND QUARTER RESULTS AS
SALES AND EARNINGS MOMENTUM CONTINUES
HOUSTON, DECEMBER 13, 2000 - SYSCO Corporation (NYSE: SYY) announced today
that continuing strong sales and earnings momentum should boost earnings per
share to the $0.39 to $0.41 level for the second fiscal quarter ending December
30, 2000, compared to $0.31 per share earned in the same quarter last year.
"We are particularly pleased that our efforts are being rewarded, as the
American public continues to enjoy eating meals prepared away from home," said
Charles H. Cotros, chairman and chief executive officer of SYSCO. "We believe
that this activity is not a luxury, but has become ingrained in the fast-paced
lifestyles we enjoy today."
"A number of factors are contributing to this strong performance," he
emphasized. "SYSCO's favorable customer and product mix, the continuing
acceptance of quality-assured SYSCO Brand products, the ongoing efficiency and
productivity gains resulting from our technology solutions and our aggressive
expansion goals are driving our continued success and should produce results
more favorable than initially anticipated."
With respect to the latter half of the fiscal year, Mr. Cotros noted that
he is cautiously optimistic. "During the remainder of the year, we will be
comparing to particularly strong 41 percent earnings per share growth during
last year's third quarter and a 23 percent earnings per share gain for the
fourth quarter of fiscal 2000, which consisted of 13 weeks compared to 14 weeks
in the prior year," he said.
A complete second quarter earnings release is scheduled for Wednesday,
January 17, 2001.
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SYSCO, listed on the New York Stock Exchange, is the largest foodservice
marketing and distribution organization in North America. Generating annual
sales of $19.3 billion for the fiscal year ended July 1, 2000, the company
provides food and related products and services to approximately 325,000
restaurants, healthcare and educational facilities, lodging establishments and
other foodservice customers. The SYSCO distribution network extends throughout
the entire continental United States, Alaska, the District of Columbia, Hawaii
and portions of Canada.
FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS MADE HEREIN ARE FORWARD-LOOKING STATEMENTS UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THEY INCLUDE STATEMENTS
REGARDING SALES MOMENTUM, EARNINGS GROWTH, CONTINUED STRENGTH OF SYSCO BRAND
PRODUCTS, INDUSTRY GROWTH, THE AWAY-FROM-HOME EATING HABITS OF THE AMERICAN
PUBLIC AND IMPROVED OPERATING EFFICIENCIES AND PRODUCTIVITY RELATED TO
INFORMATION SYSTEMS. THESE STATEMENTS INVOLVE RISKS AND UNCERTAINTIES AND ARE
BASED ON MANAGEMENT'S CURRENT EXPECTATIONS AND ESTIMATES; ACTUAL RESULTS MAY
DIFFER MATERIALLY. THOSE RISKS AND UNCERTAINTIES THAT COULD IMPACT THESE
STATEMENTS INCLUDE THE RISKS RELATING TO THE FOODSERVICE DISTRIBUTION INDUSTRY'S
RELATIVELY LOW PROFIT MARGINS AND SENSITIVITY TO GENERAL ECONOMIC CONDITIONS;
SYSCO'S LEVERAGE AND DEBT RISKS; THE SUCCESSFUL COMPLETION AND INTEGRATION OF
ACQUISITIONS; THE POSSIBILITY THAT THE COMPANY'S INFORMATION SYSTEMS WILL NOT
OPERATE AS ANTICIPATED AND THEREFORE NOT PROVIDE THE COMPANY WITH THE EXPECTED
COMPETITIVE EDGE, THE RISK OF INTERRUPTION OF SUPPLIES DUE TO LACK OF LONG-TERM
CONTRACTS, SEVERE WEATHER, WORK STOPPAGES OR OTHERWISE; INTERNAL FACTORS SUCH AS
THE ABILITY TO CONTROL EXPENSES AND OTHER RISK FACTORS DETAILED IN SYSCO'S FORM
10-K FOR THE FISCAL YEAR ENDED JULY 1, 2000 FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
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