A&P Plans Reorganization

MONTVALE, NJ-For both Q4 and FY 2004 ended Feb. 26, the Great Atlantic & Pacific Tea Co. suffered operating losses, its top executives revealed yesterday, but they were less than the comparable year-earlier periods. And against that backdrop of improved results, company officials unveiled plans for a major restructuring that could take the grocer in a new direction.

By the numbers, A&P’s sales for the 12-week Q4 2005 were $2.6 billion, compared to $2.7 billion for the 13-week Q4 2003. The Q4 loss from continuing operations was $5 million, or $0.14 per share, compared to $63 million, or $1.63 per share a year earlier. And same-store sales were described yesterday as “flat.”

For the 52-week FY 2004, sales were $10.85 billion compared to $10.9 billion for the 53-week FY2003. The net loss per share was $4.88 for FY ’04, including a loss of $0.11 per share from discontinued operations, compared to a per-share loss of $4.08 per share a year earlier. The latter included earnings of $1.67 per share from discontinued operations, less a$0.21 per share charge relating to accounting changes. For the full year, comparable store sales were up 0.1%.