Kroger 1Q profit surges 10 percent [June 27, 2007]  CINCINNATI (AP) -- Kroger Co., the nation's largest traditional grocery store operator, said Tuesday its first-quarter profit surged 10 percent and announced its board has approved a $1 billion share buyback program. For the three months ended May 26, earnings rose to $336.6 million, or 47 cents per share, from $306.4 million, or 42 cents per share, in the prior-year quarter.

Chamber Corner Main Street News Job Hunt | Classifieds Calendar | Illinois Lottery  Tech News Elsewhere (fresh daily from the Web) Business News Elsewhere (fresh daily from the Web)

Kroger said its latest results included charges of about 2 cents per share related to labor unrest at a distribution center. Results in the same period a year ago included a one-time legal expense of 3 cents per share.

Quarterly sales increased 7 percent to $20.73 billion, from $19.42 billion.

Analysts surveyed by Thomson Financial, who typically exclude one-time items in their forecasts, predicted earnings of 48 cents per share on sales of $20.4 billion.

Same-stores sales, which measures sales at stores open at least a year, rose 6 percent including motor fuel sales and 5.2 percent without motor fuel. Same-store sales is a key measure of retailer performance, because it excludes the potentially distorting impact of sales at newly opened or recently closed stores.

Kroger confirmed its fiscal 2007 earnings guidance of $1.60 to $1.65 per share.

The supermarket owner said the new buyback program replaces a $500 million stock buyback announced in May 2006, Kroger said.

The company plans to use free cash flow to fund the buyback.

Kroger shares fell 76 cents, or 2.6 percent, to $28.90 in pre-market trading.

[Associated Press]