CHARLOTTE, N.C. -- Ruddick Corp. here said last week operating results for its Harris Teeter subsidiary in the second quarter ended April 1 exceeded results in any quarter over the last 10 years.
Harris Teeter sales rose 5.9% to $607.8 million for the quarter and comparable store sales rose 1.6%, while operating profits increased 19% to $18.7 million. For the six-month period, sales were up 7.2% to $1.2 billion, comparable store sales rose 2% and operating profits jumped 12% to $35.2 million.
The company said the operating margin on sales improved to 3.1% for the quarter, compared with 2.75% a year ago.
According to Dickson, "We are pleased that our investments in promotional programs are yielding positive results, and we plan to continue to be aggressive on this front."
Besides Harris Teeter, Ruddick operates American & Efird, a thread manufacturing subsidiary. Ruddick said overall sales rose 4.5% to $692 million for the quarter and 6% to $1.4 billion for the half.
However, a one-time charge of $20 million reflecting the costs of a settlement with the Internal Revenue Service resulted in an earnings loss of $7.3 million for the quarter and a decline in net income of 85.3% to $3.9 million for the half.
The company said the settlement related to the disallowance of deductions for its corporate-owned life insurance policy loan interest.