PLEASANTON, CALIF. — Retailer Safeway, Inc. said it is in talks to sell the company, but emphasized that while talks are ongoing it has not reached an agreement on a transaction. In addition, the company said it is looking to divest its 49% stake in Casa Ley S.A. de C.V., a retailer in Mexico.
The announcements were a prelude to the issuance of Safeway’s fiscal 2013 earnings. For the year ended Dec. 28, 2013, the retailer’s net income rose sharply to $3,507.5 million, equal to $14.53 per share on the common stock, compared with $596.5 million, or $2.41 per share, the prior year.
Sales for the year totaled $36,139 million, a slight increase to fiscal 2012 when sales were $36,068 million.
The sharp spike in earnings was due to the company’s sale of its Canadian operations during the fourth quarter. The retailer’s net income during the quarter equaled $3,314.4 million, or $13.65 per share, compared with $244 million, or $1.02 per share, during the same period of the previous year.Fourth-quarter sales were $11,306 million, a slight increase compared with the previous year when sales were $11,220.9 million.