MINNEAPOLIS — Stock in Nash Finch here gained 7.2% Thursday after the company posted a 185.3% increase in quarterly earnings, boosted by the aftereffects of a court settlement with Roundy’s.
The settlement to the Roundy’s dispute allowed Nash Finch to recognize a $7.6 million gain from an adjustment in the purchase price for two warehouses it purchased from Roundy’s in 2006. Along with lapping an $8.8 million inventory adjustment in last year’s third quarter, net earnings leaped to $21.9 million for the fiscal third quarter, which ended Oct. 10.
Alec Covington, president and chief executive officer of Nash Finch, in a conference call yesterday said he was pleased with the quarterly results, saying the company increased EBITDA by 4.6% by “managing in choppy waters” of price deflation and a consumer base under pressure. Sales were up 15.3% to $1.6 billion, but down by 0.9% excluding new acquisitions. Retail sales fell 4.4%, and comps were down 3.3%.
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