HOUSTON (AP) — The food distributor Sysco Corp.'s net income dropped 22 percent in its fiscal third quarter, pulled down by pension plan-related costs and tough market conditions.
President and CEO Bill DeLaney said in a statement on Monday that the quarter's sales and operating earnings were hurt by economic and weather conditions, which made consumers less willing to spend on meals away from home.
Its shares fell 36 cents, or 1 percent, to $34.30 in premarket trading about 40 minutes before the opening bell.
The Houston-based company earned $201.4 million, or 34 cents per share, for the period ended March 30. That's down from $259.6 million, or 44 cents per share, in the prior-year period.
Taking out the pension plan-related costs and other items, earnings were 40 cents per share. When also stripping out business transformation expenses, earnings were 49 cents per share.
Analysts surveyed by FactSet expected earnings of 40 cents per share.
Revenue rose 4 percent to $10.93 billion from $10.5 billion, topping the $10.8 billion that Wall Street predicted.