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Business Briefs

Reported by Star-Bulletin staff & wire

Wednesday, August 23, 2000

Albertson's drags down grocery shares

NEW YORK -- Share prices of every company in the Standard & Poor's Retail Food index dropped today, after grocery and drug store chain Albertson's Inc. warned of an earnings shortfall and triggered downgrades on itself and the industry. The index, comprised of five major U.S. grocery chains including Safeway Inc., fell 93.98 points, or 9 percent, to 938.66.

A slew of Wall Street brokerages cut Albertson's ratings and price targets after the Boise, Idaho-based company said late yesterday that for the quarter ended Aug. 3, it expected earnings of about 50 cents a diluted share excluding merger-related costs and 46 cents including such costs. The warning was due to slowing sales and higher expenses, the company said. Analysts on average had forecast 62 cents a share, according research firm First Call/ Thomson Financial.

Albertson's stock sank $3.75 to close at $22.69 on the New York Stock Exchange.

Checker Auto parent crashes on Wall St.

PHOENIX -- Shares of auto parts retailer CSK Auto Corp. lost almost half their value today, after the company issued a profit warning for its fiscal second quarter because of lower sales. As a result, several analysts downgraded the stock. The company said with higher gas prices, customers are driving less, reducing the demand for auto parts.

Phoenix-based CSK operates auto parts stores in 19 states, including Hawaii, under the brand names Checker Auto Parts, Schuck's Auto Supply and Kragen Auto Parts. Its stock plunged $4.50, or 48 percent, to close at $4.94 today on the New York Stock Exchange.

Sugar prices seen heading higher

SINGAPORE -- Sugar prices, which have more than doubled in six months, could rise to their highest level in more than five years because of poor harvests in the top two exporters, Brazil and Australia, traders and producers said.

Prices could rise as high as 15 cents a pound in New York for the first time since March 1995, traders said.