SYRACUSE - Pressured by the slowing economy, The Penn Traffic Co. lost $5.6 million in the third quarter and has now lost $21.4 million through the first nine months of its fiscal year.
The Syracuse-based regional grocery chain also reported its quarterly revenues were $287.3 million for the three months that ended Nov. 1, down from $298.7 million in the same period a year ago. The company said revenues reflected a reduction in corporate-owned grocery stores from 104 to 93. However, same store sales decreased 0.8 percent over the quarter, about double the drop from the same quarter a year ago.
Penn Traffic operates or supplies more than 210 supermarkets in New York, Pennsylvania, Vermont and New Hampshire. Its stores do business under the P&C, Quality and BiLo names.
President and Chief Executive Officer Gregory J. Young said the company would continue to modernize and streamline operations. Young said because of the economy, shoppers were consolidating trips, buying less expensive products and curbing impulse buying, which resulted in lower sales volumes in the quarter.
Penn Traffic said its gross profits also were hurt by high costs that it didn't pass on to consumers in an attempt to stay competitive.
There was some positive news. Although revenues from retail grocery operations - which account for 80 percent of company revenues - declined 7.6 percent, revenues from wholesale operations grew 13.6 percent.
The company also reduced quarterly selling and administrative expenses from $83.3 million a year ago to $76.3 million this year.
Penn Traffic has struggled financially for the past decade. It emerged from a nearly two-year bankruptcy court reorganization in April 2005 with new management but has continued to lose money. It also went through bankruptcy reorganization in 1999.
Earlier this fall, the company settled fraud charges brought by the U.S. Securities and Exchange Commission, which accused Penn Traffic of falsely inflating corporate profits over several quarters between 2001 and 2003. The company settled without admitting or denying guilt. The U.S. Attorney's Office also agreed not to charge the company, although it is prosecuting three former Penn Traffic officials.
Penn Traffic operates or supplies more than 210 supermarkets in New York, Pennsylvania, Vermont and New Hampshire. Its stores do business under the P&C, Quality and BiLo names.
President and Chief Executive Officer Gregory J. Young said the company would continue to modernize and streamline operations. Young said because of the economy, shoppers were consolidating trips, buying less expensive products and curbing impulse buying, which resulted in lower sales volumes in the quarter.
Penn Traffic said its gross profits also were hurt by high costs that it didn't pass on to consumers in an attempt to stay competitive.
There was some positive news. Although revenues from retail grocery operations - which account for 80 percent of company revenues - declined 7.6 percent, revenues from wholesale operations grew 13.6 percent.
The company also reduced quarterly selling and administrative expenses from $83.3 million a year ago to $76.3 million this year.
Penn Traffic has struggled financially for the past decade. It emerged from a nearly two-year bankruptcy court reorganization in April 2005 with new management but has continued to lose money. It also went through bankruptcy reorganization in 1999.
Earlier this fall, the company settled fraud charges brought by the U.S. Securities and Exchange Commission, which accused Penn Traffic of falsely inflating corporate profits over several quarters between 2001 and 2003. The company settled without admitting or denying guilt. The U.S. Attorney's Office also agreed not to charge the company, although it is prosecuting three former Penn Traffic officials.
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