SUNBURY, Pa. -- Weis Markets here said sales rose and earnings fell for the year and fourth quarter ended Dec. 30.
xtra week, same-store sales were up only 0.4%, the company said.
Net income for the year fell 7.4% to $73.8 million, which the company said was due to several factors, including a litigation settlement of $3.1 million after taxes in a case involving a store lease; $3.2 million in expenses related to the company's ongoing examination of options for increasing shareholder value, plus increases in wage and fuel costs.
For the 14-week quarter, sales rose 3.8% to $546.4 million, and same store sales rose 7.4%, which the company said was due largely to the extra week. Net income fell 24.8% to $15.2 million due to the litigation settlement and to increased labor and fuel costs.
The company said net income for the year reflected the second-quarter sale of Weis Food Service, which accounted for sales of $95 million. The company said the decrease was more than made up for by the strength of its supermarket division and other operations.
Robert Weis, chairman, said the company is well positioned for 2001. "While the results for the year were not what we had hoped for, the underlying performance of our supermarket operation continues to show good strength," he said. "In 2001, we will continue to focus our energies and financial resources on sales growth and cost containment in addition to our efforts to increase shareholder value."
Weis operates163 stores. During the year it said it opened nine stores, including five new and four replacement units, and remodeled or expanded six others; it also closed four smaller stores.
