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Winn-Dixie profits dive
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October 7, 1998: 9:54 a.m. ET
Company reports nearly 70% drop in 1Q earnings, cites poor cost controls
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NEW YORK (CNNfn) - Winn-Dixie Stores, Inc. reported a nearly 70 percent drop in fiscal first-quarter earnings Wednesday, taking Wall Street analysts who had predicted a much smaller drop by surprise.
Jacksonville, Fla.-based Winn-Dixie reported net earnings of $14.6 million, or 10 cents per share, compared with $47.5 million, or 32 cents per share, a year earlier.
Wall Street analysts had forecast earnings per share of 27 cents.
Sales for the quarter ended Sept. 16 were $3.2 billion, up $134.6 million, or 4.4 percent, from a year ago.
The company said it was "very disappointed" with its poor results and blamed inadequate cost controls amid heavy investments in promotional activities.
But the supermarket chain said profitability in the last four weeks of the quarter had improved, adding it expects that trend to continue.
Shares of Winn-Dixie (WIN) fell 1-11/16 to 35-5/16 on the New York Stock Exchange Tuesday. 
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Winn-Dixie
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