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Kroger hits 3Q, cuts jobs
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December 11, 2001: 8:22 a.m. ET
Supermarket chain meets 3Q, but cuts 1,500 jobs, warns on 4Q.
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NEW YORK (CNN/Money) - Kroger Co. warned Tuesday that fourth-quarter and full-year results will fall short of Wall Street's expectations and said it is slashing 1,500 jobs as part of a cost-cutting move to cope with a sluggish economy.
The announcements came as one of the nation's biggest supermarket chains reported higher third-quarter results that matched Wall Street forecasts.
Cincinnati-based Kroger (KR: Research, Estimates) said Tuesday it now anticipates fourth-quarter earnings of 46 to 48 cents a share, which is below the 50 cents a share consensus forecast of analysts surveyed by earnings tracker First Call. The company also said it expects full-year earnings of $1.48-$1.50 a share, short of the Street's $1.52 estimate.
The 1,500 job cuts are part of the company's overall plan to trim more than $500 million in costs over the next two years. Most of the jobs being cut are clerical and management positions.
The company cited softer-than-expected sales in jewelry, floral and general merchandise amid the economic recession for the revisions and the cuts.
Meanwhile, Kroger reported third-quarter earnings of $258.6 million, or 32 cents a share, up from $233 million, or 28 cents, a year earlier. Analysts polled by First Call anticipated a profit of 32 cents a share.
Third-quarter sales increased to $11.4 billion from $11 billion.
Kroger's shares shed $1.30 to $23.30 Monday. 
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