Safeway 3Q profit climbs on cost control efforts

By the Associated Press | October 13, 2011 | 9:30 AM EDT

PLEASANTON, Calif. (AP) — Safeway Inc.'s fiscal third-quarter profit rose 6 percent as the grocery chain generated stronger revenue from gasoline sales and cost control efforts. Its shares rose more than 4 percent in premarket trading.

The operator of Von's, Dominicks, Safeway and other grocery chains reported Thursday that its net income rose to $130.2 million, or 38 cents per share, for the period ended Sept. 10. That's up from $122.8 million, or 33 cents per share, a year ago.

Revenue rose 7 percent to $10.06 billion from $9.4 billion.

The performance topped the 35 cents per share on revenue of $9.85 billion that analysts expected.

Its stock gained 75 cents, or 4.2 percent, to $18.72 in premarket trading.

The Pleasanton, Calif., company reaffirmed its full-year earnings forecast and guidance for revenue at stores open at least a year.