UPDATE 1-Sysco Q1 profit trails market estimates

lunes 3 de noviembre de 2008 15:13 CET
 

* Q1 profit trails estimates

* Results hurt by higher expenses, food cost inflation

Nov 3 (Reuters) - Food distributor Sysco Corp (SYY.N: Cotización) posted first-quarter profit that trailed market estimates on higher expenses and food cost inflation.

The company reported net income of $276.8 million, or 46 cents a share, compared with $267.0 million, or 43 cents a share, a year earlier.

Revenue rose 5 percent to $9.88 billion.

Analysts on average expected the company to earn 47 cents a share, before special items, on revenue of $9.88 billion, according to Reuters Estimates.

In the quarter ended Sept 27, expenses rose partly due to changes in the cash surrender value of corporate-owned life insurance and increased company-sponsored pension expenses.

Sysco, which distributes food and other supplies to restaurants, cafeterias and other food service outlets, said food cost inflation, as estimated by its change in cost of goods, was 8 percent in the quarter.

Shares of the Houston-based company closed at $26.20 Friday on the New York Stock Exchange.

For the press release, please click [ID:nGNW53603a] . For the alerts, please click [ID:nWNAB6585] . (Reporting by Anne Pallivathuckal in Bangalore; Editing by Anil D'Silva)