Foodservice provider Sysco Corporation (NYSE:SYY) has reported financial results for its 13-week first fiscal quarter ended October 1, 2011.
Sales for the fiscal 2012 first quarter were $10.6 billion, an increase of 8.6% compared with sales in the same period a year earlier.
Gross profit for the first quarter was $1.9 billion, a gain of 5.5% over the prior year. Operating expenses in the first quarter rose $98 million, or 7.3%, versus operating expenses in the prior-year period.
Operating income totaled $509 million in the first quarter, advancing $3 million, or 0.6% compared with operating income the year before.
Net earnings for the first quarter were $303 million, an increase of $4 million, or 1.2%, from net earnings in the prior year.
Cash flow from operations was $255 million for the first quarter of fiscal 2012. Capital expenditures totaled $227 million for the first quarter, including $45 million related to the company’s business transformation project. Primary areas for investment included facility replacements and expansions, replacements to Sysco’s fleet, and technology.
“I am encouraged by our underlying business performance during the quarter as softening consumer sentiment contributed to ongoing challenges for the foodservice industry,” said Bill DeLaney, Sysco’s president and chief executive officer.
Sysco sells, markets, and distributes food products to restaurants, healthcare and educational facilities, lodging establishments, and other clients. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. The company operates 177 distribution facilities serving about 400,000 customers. For the fiscal year 2011 that ended July 2, 2011, the company generated record sales of more than $39 billion.
For more information, visit www.sysco.com.