MAUMEE, Ohio -- Seaway Food Town here said increased product costs affected earnings for the third quarter ended May 27. However, earnings for the year-to-date still far exceeded last year's.
For the quarter, Seaway said that net income was $589,000, a 34% drop from last year. Sales were up 2.2% to $139.2 million.
For 39 weeks, sales rose 2.9% to $420.1 million, while earnings more than doubled to $3.2 million.
Same-store sales increased 1.2% for the quarter and 2.4% through three quarters.
Seaway said that net income for 39 weeks last year included a $70,000 after-tax charge for the early extinguishment of debt and a $256,000 charge for the cumulative effect of a change in income tax accounting.
The company said it delayed the full rollout of its electronic payment system during the quarter, pending software revisions, but expects to resume the project in the fourth quarter.
At the end of the quarter, the company operated 66 stores in northwestern and central Ohio and southeastern Michigan.
