Smart & Final Expects Lower Earnings

Los Angeles-based warehouse grocery chain Smart & Final Inc. said it expects current-quarter earnings to be “substantially� below expectations. Chief Executive Roger M. Laverty III said that “earnings pressures which we experienced in the third quarter have continued in the fourth quarter, particularly those related to our Florida operations,� where the firm has expanded in recent years. Analysts had expected the company to earn 20 cents to 28 cents a share this quarter, before a previously announced restructuring charge of 25 cents to 30 cents a share related to its Florida operations. But the announcement indicated that analysts were still too optimistic about the quarter’s results. Laverty said the company is considering “a number of other restructuring options.� The company’s shares fell 13 cents to close at $17.88 on the New York Stock Exchange before the announcement was made. Smart & Final operates 176 nonmembership warehouse grocery stores in California, Florida, Arizona, Nevada and Mexico, and two food-service distributors in Northern California and Florida.