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SYSCO blows past forecast
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April 19, 2000: 5:10 p.m. ET
CEO credits strong economy and strategic acquisitions for quarterly profit
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NEW YORK (CNNfn) - SYSCO, America's largest food service, marketing and distribution organization announced better-than-expected earnings with a 13 percent leap in quarterly revenue Wednesday.
Houston based-SYSCO earned $102 million, or 31 cents per share, compared to $72.6 million, or 22 cents per share, for the same period a year ago. Revenue jumped to $4.7 billion from $4.2 billion in 1999.
Shares of SYSCO (SYY: Research, Estimates) gained 3/4 to close at 35-15/16 in Wednesday's trading on the New York Stock Exchange.
SYSCO CEO Charles Cotros told CNNfn Wednesday that the company's stellar performance this quarter was due in part to the strong economy, and also to some strategic acquisitions into the company's fold.
Operating from 105 distribution facilities, the company provides products and services to nearly 325,000 restaurants and other food service operations across the contiguous United States and portions of Alaska and Canada.
"It's just been a fabulous quarter. We've had increases in sales of 13 percent. But real sales growth has been 10 percent, that's 2-1/2 percent better than it was last year for the same quarter," Cotros said.
Cotros told CNNfn that SYSCO's acquisition of produce company Freshpoint gives his company a dominant position in produce purchasing.(311K WAV) or (311K AIFF)
But Cotros also noted there is a lot more room for growth for SYSCO, admitting that the company has done a bad job expanding market share given SYSCO's large number of customers.(390K WAV) or (390K AIFF)
(For more earnings news click here) 
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SYSCO
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