Kroger 3Q profit dips but tops Wall Street's view

[December 01, 2011]  CINCINNATI (AP) -- Kroger Co.'s third-quarter net income slipped 2 percent, hurt by a higher inventory accounting charge. But the performance beat analysts' expectations and the nation's largest grocery chain raised its full-year earnings forecast.

Its shares rose 3.5 percent to $24 in premarket trading.

Like many grocer operators, Kroger has been dealing with rising costs. The Cincinnati company has been passing along higher prices to consumers to offset those costs and increased prices for meat and other goods.

The operator of Kroger, Ralphs and other grocery chains reported Thursday that its net income slipped to $195.9 million, or 33 cents per share, for the quarter. That's down from $202.2 million, or 32 cents per share, a year ago.

The results still topped the 31 cents per share analysts expected.

Revenue increased 10 percent to $20.59 billion, beating Wall Street's $20.4 billion estimate.

[Associated Press]

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