DALLAS, Feb. 7 /PRNewswire/ -- Fleming Companies, Inc. (NYSE: FLM)
announced today earnings guidance for fiscal years 2001 through 2003. The
company anticipates 2001 earnings to be $1.90 per share, 2002 earnings to be
$2.50 per share, and 2003 earnings to be $3.30 per share, up from its
previously announced $3.00 per share. Earnings guidance of $1.54 per share
for fiscal year 2000 was confirmed in December. Fourth quarter and full-year
earnings for 2000 will be released before the market opens on
February 14, 2001. All of the earnings forecasts are adjusted for charges
related to the company's strategic plan initiatives.
The 2001 through 2003 earnings forecasts reflect the anticipated growth
and profitability of Fleming's new business opportunities. In particular, the
company announced today that it has signed a $4.5 billion alliance with Kmart
to provide substantially all of the food and consumable products in all
current and future Kmart and Kmart supercenter stores. The Kmart business is
anticipated to result in more than a 20% return on an investment of
approximately $200 million. It will also add substantial volume that drives
nationwide synergies throughout Fleming's operations.
"Fleming is reaping the benefits of the strategic initiatives undertaken
during the last two years," said Mark Hansen, chairman of the board and chief
executive officer of Fleming. "The changes we made to lower costs and improve
our logistics infrastructure, including moves to central procurement and
efficient consolidation of assets, have put us in a position to profitably
take on business that others may find uneconomic. By serving our customers
well, we are clearly serving our shareholders well with a projected compounded
annual earnings growth rate of more than 30% from 1999 through 2003."
The company plans to substantially reduce the strategic plan charges it
has incurred over the past two years. The strategic initiatives, which gave
rise to the charges, are nearly complete and remaining charges are currently
expected to be approximately $20 million in 2001. Additionally, the earnings
forecasts include the dilutive effect of the higher number of common shares
outstanding following the equity investment made by The Yucaipa Companies,
announced today.
Investor Conference Webcast and Replay
A one-hour long conference call for shareholders and analysts will be
broadcast on the world wide web beginning today at 11:00 a.m. Eastern Standard
Time. To listen, log on to http://www.fleming.com . A replay of the conference call
will also be available beginning at 2:00 p.m. Eastern Standard Time on
February 7, 2001 and will continue until February 14, 2001. The dial-in phone
number for the replay is 719.457.0820, confirmation code 723307.
Fleming is a $15 billion company and industry leader in distribution and
has a growing presence in value retailing. Fleming's primary business is
buying and selling merchandise. The company serves approximately
3,000 supermarkets including more than 800 North American stores of global
supermarketer IGA, 3,000 convenience stores and nearly 1,000 supercenters,
discount, limited assortment, drug, specialty, and other businesses across the
country. To learn more about Fleming, visit our website at http://www.fleming.com .
Safe Harbor Statement
This release includes statements that:
(a) predict or forecast future events or results; (b) depend on future
events for their accuracy; or (c) embody projections and assumptions
that may provide to have been inaccurate, including expectations for
years 2001 and beyond.
These projections, forward-looking statements, and the company's business
and prospects are subject to a number of factors that could cause actual
results to differ materially, including: the ability to achieve the expected
synergies and anticipated cost savings from the Kmart alliance; unanticipated
transition and start-up costs associated with the Kmart alliance; the ability
to obtain required capital or obtain it on acceptable terms; unanticipated
problems in the supply chain due to the increased volumes resulting from the
Kmart alliance; unanticipated strategic plan charges; the ability to
successfully generate new business; adverse effects of the changing industry
environment and increased competition, sales declines, and loss of customers;
exposure to litigation and other contingent losses; and negative effects of
indebtedness and the limitations imposed by restrictive covenants contained in
debt instruments. These and other factors are described in the company's
periodic reports available from the Securities and Exchange Commission.
CONTACTS:
(Media) Shane Boyd 972.906.8824
(Investors-Equity) Meredith Anderson 972.906.8592
(Investors-Debt) Alan McIntyre 972.906.8126
SOURCE Fleming
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Related links:
http://www.fleming.com
CONTACT:
media, Shane Boyd, +1-972-906-8824, or
investors-equity, Meredith Anderson, +1-972-906-8592, or
investors-debt, Alan McIntyre, +1-972-906-8126, all of Fleming
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