Kroger Profit's Up

This afternoon the Kansas City Star reported that the Kroger Co., the nation’s largest grocery chain, profits rose 18 percent on strong sales.

It boosted its earnings forecast slightly for the full year, but the new forecast was still below Wall Street’s expectations. It also said margins on fuel sales were lower. Its shares tumbled more than 6 percent in morning trading.

Profit for the quarter ended Nov. 10 rose to $253.8 million, or 37 cents a share, from $214.7 million, or 30 cents, last year. Results include a benefit of undisclosed magnitude from resolving some tax issues, offset by lower margins from retail fuel operations.

Revenue jumped 10 percent to $16.14 billion from $14.7 billion.

Kroger a competitor of the regional company, I work for is the only grocery company in my portfolio and one of my largest holdings.

Kroger, which reported $66.1 billion in sales in 2006, operates 2,487 supermarkets and multi-department stores in 31 states under two dozen local banners, including Dillons, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s, Fry’s, QFC and City Market.