In this file:
· Sysco announces more corporate layoffs even as earnings beat Wall Street expectations
· Sysco Stock Climbs on Q2 Earnings Beat, Continued Growth
Sysco announces more corporate layoffs even as earnings beat Wall Street expectations
By Paul Takahashi, Houston Chronicle
February 4, 2019
Sysco on Monday said it laid off 10 percent of its corporate support staff even as the nation's largest food distributor reported better-than-expected earnings.
The Houston company said the layoffs were part of a national effort to streamline its business amid rising supply chain costs, driven primarily by a shortage of commercial truck drivers. The company, which has more than 67,000 employees, said less than 300 workers were impacted.
"Any time you take an action like this, it's difficult for our associates involved and we take that seriously," Chairman and CEO Tom Bené said in a conference call with analysts. "But at the same time, it's our responsibility to optimize this business and improve our customers' experience."
The reduction is the latest to hit Sysco after it announced plans in December to lay off an undisclosed number of finance employees early this year. The move comes as Sysco posted a $267.4 million profit, a decline of 5.9 percent from a year earlier, during its fiscal 2019 second quarter ending Dec. 29.
Sysco, which operates on an atypical fiscal calendar, reported adjusted earnings per share of 75 cents, beating Wall Street expectations of 73 cents. Although sales rose 2.5 percent to $14.8 billion from $14.4 billion, operating expenses rose at a higher rate: 6.9 percent to $2.3 billion, from $2.2 billion.
Sysco in recent months said it has struggled...
Sysco Stock Climbs on Q2 Earnings Beat, Continued Growth
Shares of Sysco climbs Monday morning after the food distributor beat Wall Street's second-quarter earnings expectations.
Rob Lenihan, TheStreet
Feb 4, 2019
Shares of Sysco Corp. (SYY - Get Report) climbed 4.81% to $66.63 Monday after the food distributor beat Wall Street's second-quarter earnings expectations.
The Houston-based company reported net income of $267.4 million, or 51 cents a share, down from $284.1 million, or 54 cents a share a year ago. Adjusted earnings were 75 cents a share, beating analysts' expectations of 72 cents a share.
Sysco posted revenue of $14.77 billion, up from $14.4 billion a year ago. Sales at the company's U.S. foodservice operations rose 4.2% to $10.1 billion and international food sales operations increased 0.8% to $2.9 billion.
For the second half of fiscal 2019, the company said sales increased 3.2% to $30 billion.
Tom Bené, chairman, president and CEO, said in a statement that "we saw solid topline growth, while we continue making investments in our business, particularly in our international segment.
"We remain focused on exceeding our customers' expectations, while continuing to manage costs, and anticipate seeing additional benefit from our cost savings initiatives in the second half of this fiscal year," Bené said.
In order to drive continued growth and value creation, the company recently made organizational and executive leadership changes...