Sainsbury Posts Drop In Underlying Profit

J Sainsbury PLC JSAIY posted a pretax loss for the first six months of the financial year. For the half year, the company posted a pretax loss of GBP290 million, versus a year-ago pretax profit of GBP433 million. Its total sales fell to GBP13.91 billion versus GBP13.95 billion. Sainsbury's profit, before tax and exceptional items, slipped 6.3% to GBP375 million, while underlying basic earnings per share declined 12.7% to 14.5 pence. The company's sales in stores open for more than a year, excluding gasoline, dropped 2.1%. The company maintained its interim dividend at 5.0 pence. David Tyler, Chairman said, “The UK grocery sector has become increasingly challenging in recent months. As a result, we have evolved our strategy and believe this will allow us to build on our heritage and past success, especially as it will be delivered by the most experienced management team in the industry.” The company said it projects profitability in the second half to be lower than the first half. Sainsbury's shares gained 5.88% to close at $17.02 yesterday.