Market News

A&P Acquisition Fuels Metro Profit

Metro Inc.\'s third-quarter profit zoomed 50% after the Montreal-based supermarket chain digested its $1.7 billion purchase of A&P last year. In its August 10th report the company said it earned $85.1 million, or 73 cents a share. That is up from a year earlier profit of $56.9 million, or 58 cents a share. Sales jumped 76% to $3.34 billion from $1.9 billion as Metro added A&P Canada\'s 236 Dominion and A&P stores to its network. Excluding the A&P acquisition, third-quarter sales were up 2.9%. The company said it realized $15.5 million in synergies in the third quarter and is confident it would exceed its target of $35 million for the first year following the acquisition. Source: Canadian Grocer E-Newsletter, August 25, 2006.