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News > Companies
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Kroger hits 3Q, cuts jobs
graphic 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.

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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. graphic





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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