Sysco Corp. (NYSE: SYY), Houston, TX, reported sales for the first quarter ended Sept. 26, 2009, were $9.1 billion, a decrease of 8.1% from the same period a year ago. Profit improved 17.8% to $326.2 million.
The decline in sales was primarily a result of reduced consumer spending and significant food cost deflation, CEO Bill De Laney said. Food cost deflation, as measured by the estimated change in Sysco’s cost of goods, was 3.4% percent for the quarter.
Operating expenses declined $132 million, or 9.5%, for the first quarter of fiscal 2010 compared to the prior year period, primarily from declining payroll expense related to reduced headcount and lower incentive compensation.
Sysco sells, markets and distributes food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home.
