Safeway's Q3 down 4.5%

PLEASANTON, Calif. — Safeway on Thursday reported net income of $122.8 million for the third quarter ended Sept. 11, down 4.5% as compared with the year-ago period. Results for the third quarter included $12 million in employee severance charges, offset by a lower tax rate, compared with third quarter 2009.

"Our third-quarter results were in line with our expectations," stated Steve Burd, chairman, president and CEO. "The trend in price per item improved during the quarter. ... We continue to tailor our offerings to the changing needs of our customers, with innovative consumer brand launches of Refreshe beverages and In-Kind personal care products, while offering lower everyday prices and attractive club card specials."

Total sales were down 1% to $9.4 billion in the third quarter. Same-store sales were down 2% due to a decline in price-per-item.