Loblaw Falls Most Since 2009 on Grocer’s Earnings Outlook: Toronto Mover
Loblaw Cos. (L), Canada’s biggest grocer, fell the most in more than two years after the company said earnings this year will fall from 2011 on higher costs for technology.
Loblaw fell 5.8 percent to C$35.19 at 11:29 a.m. in Toronto trading, the largest drop since July 7, 2009, after fourth- quarter profit missed analysts’ estimates. Earlier, it fell as much as 6.2 percent, its biggest decline in more than three years.
Earnings per share for 2012 will be down from last year, with more “pressure” in the first half, on increased spending on technology, the Brampton, Ontario-based company said today in a statement.
Loblaw said it plans to spend C$1.1 billion ($1.1 billion) in the fiscal year, with 40 percent dedicated to information technology and supply-chain projects.
Net income rose 5.5 percent to C$174 million, or 60 cents a share, from C$165 million, or 58 cents. The company was forecast to earn 66 cents a share, based on a Bloomberg survey of five analysts.
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To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net
To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net
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