Sysco Falls Short in 3Q, Blames Weather

By EarningsFOXBusiness

Sysco (NYSE:SYY) reported third-quarter earnings just below Wall Street expectations on Monday as harsh winter weather and high fuel costs weighed on deliveries.

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The Houston-based food deliverer said operating income fell 1.4% to $333 million, or 31 cents a share, compared with a year-earlier profit of $337 million, or 34 cents.

Excluding one-time integration costs, Sysco said it earned 38 cents, below average analyst estimates in a Thomson Reuters poll by a penny.

Revenue for the three months ended March 29 grew 3.2% to $11.3 billion from $10.9 billion a year ago, marginally below the Street’s view of $11.38 billion.

Modest sales growth was attributed to severe weather and lower levels of inflation compared with last year. However, Sysco said March sales and profit were “significantly stronger” compared with the earlier part of the quarter.

“Demand rebounded with improved weather and locally-managed sales strengthened," Sysco CEO Bill DeLaney said in a statement. The company, he said, also continued to make progress on its restructuring plan, helping to lower expenses despite higher delivery costs.

Shares of Sysco were down 0.40% to $36.07 in recent trade.

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