Announces Extension
of Exchange Offer
HOUSTON, December 13, 2002--Sysco International, Co., a wholly
owned subsidiary of SYSCO Corporation (NYSE:SYY), announced
that the exchange offer for its 6.10% notes due 2012 has been
extended to 5:00 p.m. (EST), on Friday, December 13, 2002.
Sysco International is issuing new notes registered under
the Securities Act of 1933 in exchange for a like principal
amount of its old notes issued in May 2002 which were not
so registered. The notes are fully and unconditionally guaranteed
by SYSCO Corporation.
Sysco International said Wachovia Bank, National Association,
the exchange agent for the exchange offer, had reported that
approximately $199,000,000 aggregate principal amount (or
99.50%) of the $200,000,000 outstanding 6.10% notes due 2012
had been physically tendered as of 5:00 p.m. (EST) on December
12, 2002, the original expiration date.
SYSCO is the largest foodservice marketing and distribution
organization in North America, generating sales of approximately
$23.4 billion for fiscal year 2002 that ended June 29, 2002.
Supported by more than 46,000 employees, the company provides
products and services to about 415,000 customers, including
restaurants, healthcare and educational institutions, lodging
establishments and other foodservice operations. The SYSCO
distribution network extends throughout the entire United
States and Canada and includes broadline companies, specialty
produce, meat and hotel supply operations and SYGMA, the company's
chain restaurant distribution subsidiary.
Return
to headlines
To Expand Southern
California Presence with New Fold-Out Distribution Company
HOUSTON, December 10, 2002--SYSCO Corporation (NYSE:SYY)
today announced it has signed a definitive agreement with
California-based Tenby Inc. to purchase a 46 acre site on
Sturgis Road, near Del Norte Boulevard in Oxnard, Calif.,
on which a 300,000-square-foot distribution center will be
constructed. The deal is subject to completion of SYSCO's
due diligence activities, which will include normal environmental
site investigations and confirmation by the city of Oxnard
that the site can be developed to meet all of SYSCO's requirements.
Construction of the distribution center is expected to begin
in the spring of 2003 and the company is expected to be operational
by the second quarter of calendar year 2004. The operation
will become SYSCO's twelfth broadline "fold-out" company and
its fifteenth distribution location in California, adding
to its five current broadline facilities, four specialty produce
operations, two hotel amenity suppliers, two SYGMA companies
and a specialty meat distribution firm.
Commenting on the announcement, Charles H. Cotros, SYSCO's
chairman and chief executive officer, said, "We have publicly
expressed our strategy to expand our presence in the Southern
California market for some time. Today, thanks in large part
to the assistance and responsive service of the Economic Development
Corporation of Oxnard and the City of Oxnard staff, that strategy
is being set in place. This new 'fold-out' operation will
allow us to further enhance the outstanding service levels
that our customers require and are accustomed to, while also
providing the opportunity to gain additional market share
in the vibrant Southern California market."
Mr. Cotros also noted that SYSCO's "fold-out" strategy --
the opening of a new facility in an area with an established
customer base of between $120 and $150 million that is being
served from a distant SYSCO location -- continues to be a
successful internal geographic growth strategy since its inception
in fiscal 1995.
"In 2002 broadline 'fold-out' companies opened in Columbia,
S.C., and Las Vegas, Nev.," added Mr. Cotros. "The strategy,
which allows us to be even more responsive to our customers,
has often proven to be a more viable alternative to acquisitions
and continues to be a key internal growth component for SYSCO."
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to approximately 415,000 restaurants,
healthcare and educational facilities, lodging establishments
and other foodservice customers. The company generated sales
of $23.4 billion for its fiscal year 2002 that ended June
29, 2002. SYSCO's operations are located throughout the United
States and Canada and include broadline companies, specialty
produce, meat and hotel supply operations and SYGMA, the company's
chain restaurant distribution subsidiary.
Forward-Looking Information
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding implementation, timing and
success of "fold-outs." These statements involve risks and
uncertainties and are based on current expectations and management's
estimates; actual results may differ materially. Decisions
to pursue "fold-outs" could vary depending on construction
schedules and the timing of other purchases, such as fleet
and equipment, while "fold-out timing and results could be
impacted by competitive conditions, labor issues and other
matters. For a discussion of these and other risks that could
cause actual results to differ from those contained in the
forward looking statements, see SYSCO's Form 10-K for the
fiscal year ended June 29, 2002 filed with the Securities
and Exchange Commission.
Return
to headlines
To Acquire Asian
Foods Inc.
HOUSTON, November 12, 2002--SYSCO Corporation (NYSE:SYY)
today announced it has entered into a definitive agreement
to acquire Asian Foods Inc., North America's largest Asian
foodservice distribution company. The company expects to complete
the acquisition by Nov. 23.
Founded in 1985, Asian Foods Inc. operates from two locations,
St. Paul, Minn., and Kansas City, Mo. Through its fleet of
42 delivery vehicles and employee base of 261 associates,
the company supplies approximately 2,000 products to 1,800
customers in 14 states, including its exclusive distribution
of the Ji Hao -- which translates to "Best of the Best" --
brand. Asian Foods has generated sales in excess of $100 million
for the 12 months ended Oct. 31, 2002.
Charles H. Cotros, SYSCO's chairman and chief executive
officer, said, "This is a very strategic acquisition that
provides an excellent opportunity for SYSCO to enter into
a niche customer base. The superior products and customer
service offered by Asian Foods are well known throughout their
market and we are excited about the opportunities this addition
will bring to SYSCO."
Frank J. Hamel, who will continue as president and chief
executive officer of Asian Foods Inc., added, "Our people
have done an outstanding job over the years to establish ourselves
as the leader in our market. Because of the size of this opportunity
we always knew it would make sense to partner with someone
to accelerate our national expansion. We've chosen SYSCO not
only because they are the continent's number one foodservice
distributor, but also because they were the most thoughtful
about how to approach this multi-billion dollar niche, and
we share the same values."
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to approximately 415,000 restaurants,
healthcare and educational facilities, lodging establishments
and other foodservice customers. The company generated sales
of $23.4 billion for its fiscal year 2002 that ended June
29, 2002. SYSCO's operations are located throughout the United
States and Canada and include broadline companies, specialty
produce, meat and hotel supply operations and SYGMA, the company's
chain restaurant distribution subsidiary.
Forward-Looking Information
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding the timing and expected
benefits of the acquisition of Asian Foods, Inc. and SYSCO's
continued pursuit of customer niche distributors. These statements
are based on management's current expectations and estimates;
actual results may differ materially due to certain risks
and uncertainties. For example, the timing of the acquisition
and the ability of Asian Foods and the Company to achieve
expected results may be affected by successful completion
of the acquisition, competitive price pressures, availability
of supplies, work stoppages, severe weather, successful integration
of Asian Food's operations by the Company, conditions in the
economy, industry growth and internal factors, such as the
ability to control expenses. For a discussion of additional
factors affecting the Company, see the Company's Annual Report
on Form 10-K for the fiscal year ended June 29, 2002 as filed
with the Securities and Exchange Commission.
Return
to headlines
Increases Quarterly
Cash Dividend
HOUSTON, November 8, 2002--SYSCO Corporation (NYSE:SYY) announced
today its Board of Directors increased the quarterly cash
dividend per share by 22.2 percent, to $0.11 from $0.09. The
Board declared the new rate payable on Jan. 24, 2003, to shareholders
of record Jan. 3, 2003. The dividend increase is SYSCO's 34th
in its 33-year history.
Charles H. Cotros, SYSCO's chairman and chief executive
officer, said, "Our Board has always believed our stockholders
should share in the benefits of SYSCO's consistent growth
and performance, as evidenced by our payout of more than $1.3
billion in dividends in our history. The decision to increase
the current dividend reflects the Board's confidence in SYSCO's
future prospects and its ability to generate significant cash
flow for dividend payments after investing sufficient capital
to grow our business."
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to approximately 415,000 restaurants,
healthcare and educational facilities, lodging establishments
and other foodservice customers. The company generated sales
of $23.4 billion for fiscal year 2002 that ended June 29,
2002. The SYSCO distribution network extends throughout the
United States and Canada.
Forward-Looking Information
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding SYSCO's ability to generate
sufficient cash flow to pay dividends after investing sufficient
capital to grow its business. These statements involve risk
and uncertainty and are based on management's current expectations
and estimates; actual results may differ materially. The risks
and uncertainties that could impact these statements include
the risks relating to the foodservice distribution industry's
relatively low profit margins and sensitivity to general economic
conditions, including the current economic environment; SYSCO's
leverage and debt risks, the successful completion of acquisitions
and integration of acquired companies, the risk of interruption
of supplies due to lack of long-term contracts, severe weather,
work stoppages or otherwise; and internal factors, such as
the ability to control expenses. For a discussion of other
factors that could cause actual results to differ from those
described in the forward-looking statements, see the Company's
Annual Report on Form 10-K for the fiscal year ended June
29, 2002 as filed with the Securities and Exchange Commission.
Return
to headlines
First Quarter EPS
Rise 16.7% On Sales Increase of 10.2%
HOUSTON, October 25, 2002--SYSCO Corporation (NYSE:SYY),
North America's leading foodservice marketer and distributor,
today announced results for its first quarter of fiscal year
2003 ended Sept. 28, 2002.
First Quarter Highlights:
-- Diluted earnings per share rose 16.7% to $0.28 compared
to $0.24 in the same period last year
-- Net earnings climbed 11.4% to $183 million vs. $164 million
in last year's first quarter
-- Sales increased 10.2% to $6.4 billion vs. $5.8 billion
in last year's first quarter
-- Real sales growth was 7.0% compared to last year's first
quarter
-- Marketing associate-served sales as a percentage of traditional
broadline sales increased to 57.2% from 56.2%
-- SYSCO Brand items accounted for 56.7% of marketing associate-served
sales and 48.9% of all traditional broadline company sales
Charles H. Cotros, SYSCO's chairman and chief executive
officer, said, "The first quarter's accomplishments were a
direct result of our commitment to supreme customer service
and the unflagging dedication of our associates in a soft
economic environment. Our exceptional performance was a testimony
to our ability to maintain appropriate customer mix, focus
on expense reduction and provide value-added products and
services.
"For the first time in the past eight quarters we achieved
our stated long-term growth objective of high single-digit
real sales growth. Real sales growth continued an upward trend,
accelerating in the final weeks of the period to produce a
solid 7.0 percent gain," he said.
Mr. Cotros also noted that acquisitions contributed 5.4
percent to sales growth while food cost deflation, primarily
in the categories of dairy, fresh and frozen meat, seafood
and poultry, was 2.2 percent.
"Our broadline operating companies generated good gross
margin performance, which was slightly offset by the gross
margins of the SERCA operations, which have a higher mix of
multi-unit type accounts," added Mr. Cotros. "Coupled with
the performance of our SYGMA and Other segments, overall gross
profit margins increased 12 basis points for the quarter."
Mr. Cotros concluded his remarks by noting that SYSCO's
operating companies exhibited good expense control during
the first quarter. Total expenses for the quarter increased
as a percent to sales from the same quarter last year due
to a $15.5 million expense required to reflect a decline in
the value of the equity component of investments which are
maintained to meet obligations for certain non-qualified retirement
programs.
Richard J. Schnieders, SYSCO's president and chief operating
officer, also commented that The SYGMA Network Inc., SYSCO's
chain restaurant distribution subsidiary, generated $710 million
in sales for the quarter, a gain of 9.1 percent compared against
the same period last year, while the company's specialty meat,
produce and hotel supply operations combined for $394 million
in sales, a gain of 4.8 percent.
"The performance of recent broadline fold-out companies
in Las Vegas and Columbia, S.C., is in line with our expectations,
and just this week we began delivering products from our first-ever
specialty meat company fold-out in Chicago," continued Mr.
Schnieders. "In addition, the integration of the SERCA foodservice
operations in Canada is going as planned, and our strategies
of focusing on marketing associate-served customers and success
in introducing SYSCO Branded products are generating positive
results.
"Our sales momentum has continued into the second quarter
of fiscal 2003," Mr. Schnieders said. "We remain positioned
to continue gaining market share while adding value to our
employees, customers, shareholders and suppliers. SYSCO operates
in an industry that is somewhat resilient to economic conditions,
an industry that is supported by consumers' desire, and often
necessity, to enjoy meals prepared away from home. By focusing
on common goals we have again been able to provide value to
our shareholders, customers and suppliers alike."
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to approximately 415,000 restaurants,
healthcare and educational facilities, lodging establishments
and other foodservice customers. SYSCO's operations are located
throughout the United States and Canada and include broadline
companies, specialty produce, meat and hotel supply operations
and SYGMA, the company's chain restaurant distribution subsidiary.
Forward-Looking Statements
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding SYSCO's ability to continue
to profitably grow its business, gain market share and achieve
real sales growth. These statements involve risks and uncertainties
and are based on management's current expectations and estimates;
actual results may differ materially. Those risks and uncertainties
that could impact these statements include the risks relating
to the foodservice distribution industry's relatively low
profit margins and sensitivity to general economic conditions,
including the current economic environment; SYSCO's leverage
and debt risks; the successful completion of acquisitions
and integration of acquired companies; the risk of interruption
of supplies due to lack of long-term contracts, severe weather,
work stoppages or otherwise; and internal factors such as
the ability to control expenses. For a discussion of additional
factors that could cause actual results to differ from those
described in the forward-looking statements, see the company's
Annual Report on Form 10-K for the fiscal year ended June
29, 2002 as filed with the Securities and Exchange Commission.
Return
to headlines
priszm brandz Announce
National Distribution Alliance
TORONTO, October 16, 2002--Today, priszm brandz, owner and
operator of more than 760 KFC, Taco Bell and Pizza Hut restaurants
across Canada, and SYSCO Corporation (NYSE:SYY), the largest
foodservice marketer and distributor in North America, announced
a distribution contract in which SYSCO will become priszm's
national distributor of all food products, paper and other
merchandise.
The agreement was reached last week as priszm sold its distribution
arm, Pronamic, to SYSCO as part of the long-term deal.
"SYSCO has been an exceptional supplier to priszm through
its SERCA Sysco and Vancouver locations," says John Bitove,
Chairman of priszm brandz. "In an effort to build a national
distribution network we looked at our partners for the best
fit in regard to national scope and flexibility to handle
our business. We felt the best opportunity to move toward
this goal was with SYSCO. This might be the largest foodservice
supply agreement with a single franchisee in Canada."
"We are very pleased to join with priszm brandz in this
long-term relationship," said Charles H. Cotros, Chairman
and Chief Executive Officer of SYSCO. "This is a great opportunity
to expand our chain restaurant distribution business in Canada.
Because of the unique characteristics of the specialty chain
restaurant business, management of the operation will fall
under the umbrella of The SYGMA Network, Inc., SYSCO's chain
restaurant distribution subsidiary, which will provide to
priszm the outstanding service all our chain restaurant customers
expect."
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to approximately 415,000 restaurants,
healthcare and educational facilities, lodging establishments
and other foodservice customers. The company generated sales
of $23.4 billion for fiscal year 2002 that ended June 29,
2002. SYSCO's operations are located throughout the United
States and Canada and include broadline companies, specialty
produce, meat and hotel supply operations and SYGMA, the company's
chain restaurant distribution subsidiary.
priszm brandz is the largest operator of restaurants in
Canada and is a privately owned company that currently operates
more than 760 KFC, Pizza Hut and Taco Bell restaurants and
employs 16,000 people in 450 communities in Canada.
Return
to headlines
Completes Acquisition
of Abbott Foods Inc.
HOUSTON, October 15, 2002--SYSCO Corporation (NYSE:SYY),
North America's largest foodservice marketer and distributor,
today announced it has completed the acquisition of Abbott
Foods Inc., a broadline foodservice distributor located in
Columbus, Ohio. Terms of the transaction were not disclosed.
Abbott Foods Inc., which was Ohio's largest privately owned
foodservice distributor, generated sales of approximately
$220 million in 2001. The company employs more than 450 associates
and operates from a 287,000 square-foot warehouse, providing
approximately 10,000 products to 7,800 customers throughout
Ohio and surrounding states. In September 2001 the company
was recognized by Institutional Distributor magazine as the
Great Distributor Organization of the Year.
Charles H. Cotros, SYSCO's chairman and chief executive
officer, said, "Abbott is a premier organization operating
out of the second largest foodservice market in Ohio. We are
very excited to have them become a part of the SYSCO family.
Their commitment to supreme customer service and their operational
focus are in line with SYSCO's strategies and enhances our
presence in Columbus and the surrounding communities."
Larry C. Abbott, who will remain in his role as president
and chief executive officer of Abbott SYSCO Food Services,
added, "Our entire organization is excited about being a part
of North America's leading foodservice distributor. We share
a commitment to excellence and look forward to our future
opportunities."
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to approximately 415,000 restaurants,
healthcare and educational facilities, lodging establishments
and other foodservice customers. The company generated sales
of $23.4 billion for its fiscal year 2002 that ended June
29, 2002. SYSCO's operations are located throughout the United
States and Canada and include broadline companies, specialty
produce, meat and hotel supply operations and SYGMA, the company's
chain restaurant distribution subsidiary.
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding the expected benefits of
the acquisition of Abbott Foods Inc. These statements are
based on management's current expectations and estimates;
actual results may differ materially due to certain risks
and uncertainties. For example, the ability of the Company
to achieve expected results may be affected by competitive
price pressures, availability of supplies, work stoppages,
the Company's ability to successfully integrate Abbott's operations,
conditions in the economy, industry growth and internal factors,
such as the ability to control expenses. For a discussion
of additional factors affecting the Company, see the Company's
Annual Report on Form 10-K for the fiscal year ended June
29, 2002 as filed with the Securities and Exchange Commission.
Return
to headlines
First Quarter Earnings
Conference Call Available On the Internet
HOUSTON, October 14, 2002--SYSCO Corporation (NYSE:SYY),
North America's largest foodservice marketer and distributor,
today announced it will provide an online, real-time webcast
and rebroadcast of its conference call for the first quarter
of fiscal 2003.
The live webcast of SYSCO's quarterly conference call will
be available online at www.sysco.com on Friday, October 25,
2002, beginning at 10:00 a.m. (EDT). The online replay will
be available at approximately 12:00 p.m. (EDT) and remain
archived until Friday, November 8, 2002.
SYSCO is the largest foodservice marketing and distribution
organization in North America, generating sales of approximately
$23.4 billion for fiscal year 2002 that ended June 29, 2002.
Supported by more than 46,000 employees, the company provides
products and services to about 415,000 customers, including
restaurants, healthcare and educational institutions, lodging
establishments and other foodservice operations. The SYSCO
distribution network extends throughout the United States
and Canada and includes broadline companies, specialty produce,
meat and hotel supply operations and SYGMA, the company's
chain restaurant distribution subsidiary.
Return
to headlines
Declares Regular
Quarterly Dividend
HOUSTON, September 13, 2002--SYSCO Corporation (NYSE:SYY)
today declared a regular quarterly cash dividend of $0.09
per share, payable on Oct. 25, 2002, to common shareholders
of record at the close of business on Oct. 4, 2002.
SYSCO is the largest foodservice marketing and distribution
organization in North America. Supported by more than 46,000
employees, the company provides products and services to about
415,000 customers, including restaurants, healthcare and educational
institutions, lodging establishments and other foodservice
operations. The SYSCO distribution network extends throughout
the United States and Canada and includes broadline companies,
specialty produce, meat and hotel supply operations and SYGMA,
the company's chain restaurant distribution subsidiary. For
fiscal year 2002, which ended June 29, 2002, the company reported
sales of $23.4 billion and net earnings of $679.8 million.
Return
to headlines
Strong Sales Momentum
Carries Into First Quarter of Fiscal 2003
HOUSTON, September 4, 2002--SYSCO Corporation (NYSE:SYY),
North America's largest foodservice marketer and distributor,
announced today that the company achieved solid real sales
growth of 6.0 percent for the first eight weeks of its fiscal
year 2003 compared to same period in fiscal 2002.
"We concluded our fiscal year 2002 with strong fourth quarter
real sales growth momentum," said Richard J. Schnieders, SYSCO's
president and chief operating officer. "We are excited that
this trend has continued into the first eight weeks of our
first quarter."
Mr. Schnieders added that a number of factors contributed
to SYSCO's strong sales performance, including favorable customer
and product mix, commitment to providing superior customer
service, the market demand for quality and value-added products,
as well as continued operating efficiency improvements and
the company's market share gains.
"Meals prepared away from home have become ingrained in
the fast-paced lifestyles we enjoy today," concluded Mr. Schnieders.
"As a result, we believe that our industry is resilient and
able to adjust to swings in our economy. Our 46,000 associates
are committed to helping our customers succeed, and when our
customers succeed, so does SYSCO."
SYSCO is the largest foodservice marketing and distribution
organization in North America, generating sales of approximately
$23.4 billion for fiscal year 2002 that ended June 29, 2002.
Supported by more than 46,000 employees, the company provides
products and services to about 415,000 customers, including
restaurants, healthcare and educational institutions, lodging
establishments and other foodservice operations. The SYSCO
distribution network extends throughout the United States
and Canada and includes broadline companies, specialty produce,
meat and hotel supply operations and SYGMA, the company's
chain restaurant distribution subsidiary.
Return
to headlines
To Acquire Columbus,
Ohio-based Abbott Foods Inc.
HOUSTON, August 29, 2002--SYSCO Corporation (NYSE:SYY) today
announced it has signed a letter of intent to acquire Abbott
Foods Inc., an independently owned broadline foodservice distributor
located in Columbus, Ohio. The purchase is expected to close
by early October, 2002.
Abbott Foods Inc., is Ohio's largest privately owned foodservice
distributor, with sales of approximately $200 million in 2001.
The company operates from a 287,000 square-foot warehouse,
providing approximately 10,000 products to 7,800 customers
throughout Ohio and surrounding states. In September 2001
Abbott Foods was recognized by Institutional Distributor magazine
as the Great Distributor Organization of the Year.
Charles H. Cotros, SYSCO's chairman and chief executive officer,
said, "The addition of Abbott Foods will complement our existing
broadline companies in Cleveland and Cincinnati. Their focus
on branded products, as well as specialty products such as
custom-cut steaks, seafood and produce, is also in line with
SYSCO's growth strategies. I am excited about this acquisition
and on behalf of all SYSCO associates I look forward to welcoming
Larry Abbott and his entire organization into the SYSCO family."
Larry C. Abbott, president and chief executive officer of
Abbott Foods Inc., said, "The opportunity to join forces with
North America's leading foodservice distributor will enhance
our procurement and growth opportunities, benefiting both
our customers and employees. We share similar values and visions,
and our entire organization looks forward to joining the SYSCO
team."
The merged company will be known as Abbott SYSCO Food Services
and will operate as one of SYSCO's autonomous operating companies
from its current Columbus, Ohio, facility.
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to approximately 415,000 restaurants,
healthcare and educational facilities, lodging establishments
and other foodservice customers. The company generated sales
of $23.4 billion for its fiscal year 2002 that ended June
29, 2002. SYSCO's operations are located throughout the United
States and Canada and include broadline companies, specialty
produce, meat and hotel supply operations and SYGMA, the company's
chain restaurant distribution subsidiary.
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding the timing and expected
benefits of the acquisition of Abbott Foods Inc. These statements
are based on management's current expectations and estimates;
actual results may differ materially due to certain risks
and uncertainties. For example, the timing of the acquisition
and the ability of Abbott Foods and the company to achieve
expected results may be affected by successful completion
of the acquisition, competitive price pressures, availability
of supplies, work stoppages, severe weather, successful integration
of Abbott's operations by the company, conditions in the economy,
industry growth and internal factors, such as the ability
to control expenses. For a discussion of additional factors
affecting the company, see the company's Annual Report on
Form 10-K for the fiscal year ended June 30, 2001 as filed
with the Securities and Exchange Commission.
Return
to headlines
Posts 26th Consecutive
Year of Record Sales and Earnings Gains
HOUSTON, July 31, 2002--SYSCO Corporation (NYSE:SYY) today
announced results for its fourth quarter of fiscal year 2002,
its 105th consecutive quarter of sales and earnings increases,
and for the fiscal year ended June 29, 2002, which also marked
the 26th year in a row that the company has achieved sales
and earnings increases.
Fourth Quarter Highlights:
-- Diluted earnings per share rose 19.2%, to $0.31 compared
to $0.26 in the same period last year
-- Net earnings climbed 18.2% to $206 million vs. $174 million
in last year's fourth quarter
-- Sales increased 9.0% to $6.3 billion vs. $5.8 billion in
last year's fourth quarter
-- Real sales grew 5.2% compared to last year's fourth quarter
-- Marketing associate-served sales as a percentage of traditional
broadline sales increased to 57.7% from 56.1%
-- SYSCO Brand items accounted for 56.2% of marketing associate-served
sales and 48.6% of all traditional broadline company sales
Fiscal Year Highlights:
-- Diluted earnings per share increased 14.8%, to $1.01 compared
to $0.88 last year
-- Net earnings increased 13.9% to $680 million vs. $597 million
last year
-- Sales reached $23.4 billion, a 7.2% gain compared to the
$21.8 billion last year
-- Real sales grew 2.7% compared to last year
-- Marketing associate-served sales as a percentage of traditional
broadline sales increased to 56.3% from 54.5%
-- SYSCO Brand items accounted for 55.9% of marketing associate-served
sales and 48.3% of all traditional broadline company sales
Charles H. Cotros, SYSCO's chairman and chief executive
officer, said, "I am extremely proud of the strong performance
of our company. Especially gratifying was our robust 5.2 percent
real sales growth in the final quarter of what I consider
one of the most challenging fiscal years in SYSCO's history.
Our results for fiscal 2002 are further enhanced by the fact
that we are comparing this year's results with sales and earnings
increases last year that were among the highest in SYSCO's
history." Mr. Cotros also noted that food cost inflation and
acquisitions contributed 1.1 percent and 3.4 percent, respectively,
to SYSCO's 7.2 percent fiscal 2002 sales growth. For the fourth
quarter food cost deflation was 1.7 percent and acquisitions
contributed 5.5 percent to SYSCO's 9.0 percent nominal sales
growth.
"Fiscal 2002 began with a recognizable slowing of the economy
and was immediately followed by the tragedies of September
11th," continued Mr. Cotros. "We stated during that period
that providing superior customer service was vital in preserving
customer relationships and would allow SYSCO to gain market
share as sales improved. Our marketing associates (MA's) provide
a distinct competitive advantage. They continue to demonstrate
to our customers the quality and benefits of SYSCO Brand products
and our menu of value-added services. As business activity
strengthened during our fourth fiscal quarter it was evident
those efforts had positioned us well and produced strong results
for both the quarter and the year."
Mr. Cotros also announced that SYSCO's Board of Directors
has approved the repurchase of an additional 20 million shares
of the company's stock. The Board last approved the repurchase
of 16 million shares in September 2001 and approximately 5.6
million shares remain available for repurchase under that
authorization. The new authorization by the Board will result
in a total of approximately 25.6 million shares authorized
for repurchase.
"In the last 10 years we have announced and completed all
previous Board authorized share repurchases, an investment
of more than $2.4 billion for more than 202 million shares,"
Mr. Cotros stated. "This 20 million share authorization by
our Board recognizes SYSCO's strong balance sheet and favorable
cash flow position as well as their confidence in management's
ability to continue to profitably grow the business for both
the near- and long-term. It also is a statement that we remain
committed to a strategy of prudently repurchasing shares."
"Our mission is to help our customers succeed," concluded
Mr. Cotros. "They depend on us daily for our superior customer
service and our menu of value-added services. The entire family
of 46,000 associates are to be commended for their commitment
to our mission and for their role in SYSCO's strong performance
in fiscal 2002."
Richard J. Schnieders, SYSCO's president and chief operating
officer, added, "During fiscal 2002 our core strategies also
permitted us to leverage our strong balance sheet and cash
flow position to expand our presence in North America. We
successfully grew sales while also controlling expenses, especially
in the warehouse and delivery portions of our business. The
acquisition of SERCA Food Service, Inc. enhanced our Canadian
distribution network to cover all of Canada. We also increased
our U.S. presence by opening broadline fold-out operations
in Sacramento, Calif., and Columbia, S.C., with another scheduled
to be operational this fall in Las Vegas. We have been pleased
with the success of the fold-out strategy and therefore will
expand it to our specialty meat locations, allowing more broadline
companies to have access to Buckhead Beef and Newport Meat
premium brands."
Mr. Schnieders also stated that SYSCO has completed a preliminary
assessment of existing goodwill for impairment in accordance
with Statement of Accounting Standards (SFAS) No. 142 "Goodwill
and Other Intangible Assets" which the company intends to
adopt in the first quarter of fiscal 2003. Based on this assessment,
SYSCO believes it has no impairment on its goodwill. Under
SFAS No. 142, the company's goodwill will not be subject to
amortization but will be tested for impairment annually. The
company's after-tax goodwill amortization expense in fiscal
2002 was approximately $15 million, or $0.02 per share.
Mr. Schnieders concluded by saying, "We have many exciting
projects and opportunities ahead of us: initiatives to enhance
supply chain efficiencies, technology innovations and the
benefits of recent acquisition integration. We are firmly
positioned to maintain our industry leadership and continue
to gain market share."
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to approximately 400,000 restaurants,
healthcare and educational facilities, lodging establishments
and other foodservice customers. SYSCO's operations are located
throughout the United States and Canada and include broadline
companies, specialty produce, meat and hotel supply operations
and SYGMA, the company's chain restaurant distribution subsidiary.
Return
to headlines
Thomas E. Lankford
Elected President & COO
HOUSTON, July 12, 2002--SYSCO Corporation (NYSE:SYY), North
America's largest foodservice marketer and distributor, today
announced that its Board of Directors has elected Thomas E.
Lankford as the company's president and chief operating officer.
Mr. Lankford, currently executive vice president and president
of North American foodservice operations, will assume his
new duties effective January 1, 2003. Mr. Lankford's appointment
is in accordance with SYSCO's management succession plan.
He will succeed Richard J. Schnieders, who on January 1, 2003
will become SYSCO's chairman and chief executive officer as
previously announced on March 18, 2002.
Mr. Lankford, 54, began his career in foodservice distribution
at the founding in 1964 of his family's business, S.E. Lankford,
Jr. Produce Company, the predecessor to SYSCO's Pocomoke City,
Md., operating company. After graduating from the University
of Maryland in 1969 with a bachelor of science degree in agricultural
economics, he was promoted to vice president, then was named
president of Lankford-Sysco Food Services, Inc., when S.E.
Lankford, Jr. Produce Company merged with SYSCO in 1981. He
also subsequently served as chairman of three other SYSCO
subsidiaries between 1987 and 1994. In 1995, Mr. Lankford
was elected senior vice president of operations, northeast
region, with responsibilities for 15 companies located in
eight states as well as SYSCO's operation in Ontario.
In 1999, Mr. Lankford relocated to SYSCO's corporate office
to serve as senior vice president of merchandising and multi-unit
sales, and he progressed to executive vice president of merchandising
services and multi-unit sales later that same year. In May
of 2000, he was elected to SYSCO's Board of Directors, and
in July of that year was named executive vice president, foodservice
operations. In January of 2002 he assumed the additional responsibilities
as president of SYSCO's North American foodservice operations.
Mr. Lankford and his wife, Bonnie, are the parents of two
daughters and a son and reside in Houston.
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating sales of approximately
$22.6 billion for calendar year 2001, the company provides
products and services to about 400,000 customers, including
restaurants, healthcare and educational facilities, lodging
establishments and other foodservice operations. The SYSCO
distribution network, supported by more than 46,000 employees,
currently extends throughout the entire United States and
Canada.
Return
to headlines
Expands Responsibilities
of Executive Vice President Larry J. Accardi
HOUSTON, July 9, 2002--SYSCO Corporation (NYSE:SYY), North
America's largest foodservice marketer and distributor, today
announced that Larry J. Accardi, who is currently executive
vice president, merchandising services and president of specialty
distribution, has been assigned the additional role of executive
vice president, multi-unit sales, effective immediately. Mr.
Accardi's scope of responsibility has been expanded due to
the company's continued growth in both product breadth and
geographic presence.
Richard J. Schnieders, SYSCO's president and chief operating
officer, said Mr. Accardi, 53, began his career with SYSCO
in 1976 as a director of program accounts at SYSCO's Memphis,
Tenn., operating company. In 1982 he was promoted to director
of marketing of that company, then vice president of marketing
in 1984, and in 1985 became senior vice president of marketing/merchandising.
In 1989 Mr. Accardi assumed the role of president and chief
operating officer of SYSCO's operation in Jackson, Miss.,
a position he held until 1992 when he was named chief executive
officer of that company. In 1995 he transferred to the Atlanta
operating company as president and chief executive officer.
In 1998, Mr. Accardi was promoted to SYSCO Corporation's
senior vice president of operations, northeast region. He
relocated to the corporate office in 2000 as executive vice
president, merchandising services and in January 2002 assumed
additional duties as president of specialty distribution.
Mr. Accardi earned a bachelor of business administration degree
from the University of Memphis in 1970. He and his wife, Kathy,
have three daughters and reside in Houston.
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating sales of approximately
$22.6 billion for calendar year 2001, the company provides
products and services to about 400,000 customers, including
restaurants, healthcare and educational facilities, lodging
establishments and other foodservice operations. The SYSCO
distribution network, supported by more than 46,000 employees,
currently extends throughout the entire United States and
Canada.
Return
to headlines
Sells $200 Million
in Senior Notes Due 2012
HOUSTON, May 23, 2002--SYSCO International Co., a wholly-owned
subsidiary of SYSCO Corporation (NYSE:SYY), has sold $200
million of senior notes due June 1, 2012 in a private offering
with registration rights. The notes bear interest at a rate
of 6.10 percent per annum, which will be paid on Dec. 1 and
June 1, beginning Dec. 1, 2002. The notes are fully and unconditionally
guaranteed by SYSCO Corporation, are unsecured, include a
redemption privilege which allows the company to retire the
notes at any time prior to maturity with a make whole provision
and are not subject to any sinking fund requirement. Proceeds
from the offering will be used to repay commercial paper issued
by SYSCO International Co. in connection with the acquisition
of the SERCA foodservice business in Canada.
The notes have not been registered under the Securities Act
of 1933, as amended, or applicable state securities laws,
and were offered and sold only to qualified institutional
buyers in reliance on Section 4(2) under the Securities Act.
Unless registered, the notes may not be offered or sold in
the United States except pursuant to Rule 144A or another
applicable exemption from the registration requirements of
the Securities Act and applicable state securities laws. This
announcement is neither an offer to sell nor a solicitation
of an offer to buy any of these securities. This press release
is being issued pursuant to and in accordance with Rule 135c
under the Securities Act of 1933, as amended.
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating sales of approximately
$22.6 billion for calendar year 2001, the company provides
products and services to over 400,000 customers, including
restaurants, healthcare and educational facilities, lodging
establishments and other foodservice operations. The SYSCO
distribution network, supported by more than 46,000 employees,
currently extends throughout the United States and Canada.
Return
to headlines
Weekly Sales Eclipse
Half Billion Dollars for First Time in Company's History
HOUSTON, May 16, 2002--SYSCO Corporation (NYSE:SYY), North
America's largest foodservice marketer and distributor, reported
a vigorous $520.5 million in sales for the week that ended
with the Mother's Day holiday, traditionally the day 38 percent
of Americans honor their mothers by treating them to a dining
experience. The sales figure represents not only SYSCO's fifth
record sales week in fiscal 2002, but also marks the first
time in the company's history that weekly sales surpassed
the half-billion dollar level.
Richard J. Schnieders, SYSCO's president and chief operating
officer, said, "The week preceding Mother's Day is typically
our strongest sales week each year. SYSCO's performance is
exciting, and our entire 46,000 associates should be congratulated
for making this possible.
"The growth of SYSCO and the foodservice industry is related
to the ability of several other industries to prosper," added
Mr. Schnieders. "The foodservice sector, like many others,
has been impacted by recent economic conditions. Tableservice
restaurants derive roughly one-third of their annual sales
revenue from tourists, and consumers are slowly returning
to their normal activities and patterns, including business
travel, vacations and dining out, all of which boost foodservice
demand. According to industry sources, in March 2002, revenue
passenger miles for domestic air travel increased 26 percent
compared to February 2002. In addition, demand for commercial
lodging grew 17 percent in March 2002 over February, and eating
and drinking place receipts grew nearly 5 percent compared
to March 2001. These short-term trends confirm our belief
in the long-term opportunities inherent in the foodservice
business."
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating sales of approximately
$22.6 billion for calendar year 2001, the company provides
products and services to about 400,000 customers, including
restaurants, healthcare and educational facilities, lodging
establishments and other foodservice operations. The SYSCO
distribution network, supported by more than 46,000 employees,
currently extends throughout the entire United States and
Canada.
Return
to headlines
Declares Regular
Quarterly Dividend
HOUSTON, May 10, 2002--SYSCO Corporation (NYSE:SYY) today
declared a regular quarterly cash dividend of $0.09 per share,
payable on July 26, 2002, to common shareholders of record
at the close of business on July 5, 2002.
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to about 400,000 customers. The SYSCO
distribution network, supported by more than 46,000 employees,
currently extends throughout the United States and Canada.
For the three quarters of fiscal 2002, which ended March 30,
2002, the company reported sales of $17.0 billion and net
earnings of $473.9 million.
Return
to headlines
Increases Earnings
Per Share For Fiscal Third Quarter
HOUSTON, April 24, 2002--SYSCO Corporation (NYSE:SYY), North
America's largest foodservice marketer and distributor, today
announced diluted earnings per share of $0.23 for the third
quarter of fiscal year 2002 that ended March 30, 2002, a 9.5
percent increase above the $0.21 earned during the same quarter
in fiscal 2001. Sales for the third quarter rose 5.2 percent,
and were $5.6 billion versus $5.3 billion in the same period
last year. Net earnings for the same period were up 8.6 percent,
or $151.4 million compared to $139.4 million last year.
Diluted earnings per share for the 39 weeks of fiscal 2002
increased 12.9 percent to $0.70, compared to $0.62 for the
same period last year. Net earnings for the nine months of
fiscal 2002 increased 12.1 percent to $473.9 million compared
with $422.7 million a year earlier. Sales for the first three
quarters of fiscal 2002 were $17.0 billion, a gain of 6.5
percent in comparison to sales of $16.0 billion for the comparable
period the previous year. Broadline sales were $4.6 billion
for the third quarter and $14.0 billion for the 39-week period,
while SYGMA sales were $648.9 million and $2.0 billion, respectively,
for the quarter and nine months.
Marketing associate-served sales as a percentage of broadline
sales increased by two percentage points for the third quarter,
or 54.9 percent compared to 52.9 percent for the same period
last year. Sales of SYSCO Brand items represented 55.9 percent
of broadline marketing associate-served sales in the third
quarter compared to the 53.5 percent posted last year.
Marketing associate-served sales in the broadline companies
increased approximately 7.6 percent for the quarter compared
to 6.7 percent in the second quarter of fiscal 2002. Real
sales growth for the third quarter, after accounting for inflation
of 1.0 percent and acquisitions of 1.5 percent, was 2.7 percent.
This represents a two-percentage point increase compared to
the 0.7 percent registered in the second quarter of fiscal
2002.
Charles H. Cotros, SYSCO's chairman and chief executive officer,
said, ``I am pleased with the performance of our businesses.
The strength of our third quarter performance was our ability
to assist marketing associate-served foodservice operators.
Despite the softness our industry has experienced, we continued
to grow in this area. While these customers are more expensive
to service, the long-term benefits of our customer service
commitment will bode well for us in the future.''
Richard J. Schnieders, SYSCO's president and chief operating
officer, said, ``Last year's fiscal third quarter was one
of the strongest quarters in our history, producing a 40.0
percent earnings per share increase over the prior year period.
Despite the comparison to exceptional results last year, earnings
per share for the third quarter this year were strong and
represented the 104th consecutive quarter of such increases,
the result of tenaciously following sound strategies, including
higher sales of SYSCO Brand items.''
Mr. Schnieders also remarked that SYSCO's fold-out and acquisition
activity during the recently completed quarter provide him
with a heightened level of optimism for the future. ``Our
presence in Canada was strengthened by the addition of SERCA,
and one of the many opportunities that acquisition provides
is the ability to bring the quality and performance of SYSCO
Brand products to thousands more Canadian foodservice operators.
In addition, our Columbia, S.C., fold-out began operations
during the third quarter and a Las Vegas facility is on schedule
to begin shipping products in the first quarter of fiscal
2003. Industry sources project that foodservice sales in both
of those regions should be above the national average. While
fold-outs are very beneficial to the long-term growth of SYSCO,
these operations do increase operating expenses in the short-term.''
In concluding his remarks, Mr. Schnieders commented, ``We
believe that our strategies are well-developed, that our systems
contribute to improving efficiencies and that we are firmly
positioned to take advantage of opportunities in all the various
markets we serve.''
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating sales of approximately
$22.6 billion for calendar year 2001, the company provides
products and services to about 400,000 customers, including
restaurants, healthcare and educational facilities, lodging
establishments and other foodservice operations. The SYSCO
marketing and distribution network, supported by more than
46,000 employees, currently extends throughout the entire
United States and Canada.
Forward-Looking Statements
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding implementation, timing and
expected impact of ``fold-out'' operations and acquisitions,
foodservice industry growth, sales trends, long-term benefits
of customer service initiatives and SYSCO's future prospects.
These statements involve risks and uncertainties and are based
on management's current expectations and estimates; actual
results may differ materially. Those risks and uncertainties
that could impact these statements include the risks relating
to the foodservice distribution industry's relatively low
profit margins and sensitivity to general economic conditions,
including the current economic environment; SYSCO's leverage
and debt risks; the successful completion of acquisitions
and integration of acquired companies; the risk of interruption
of supplies due to lack of long-term contracts, severe weather,
work stoppages or otherwise; and internal factors such as
the ability to control expenses. In addition, the decision
to pursue acquisitions and ``fold-outs'' could vary due to
construction schedules and the timing of other expenditures,
while the implementation and timing of ``fold-out'' operations
and acquisitions could be impacted by competitive conditions,
labor issues, weather, satisfactory completion of due diligence,
ability to obtain regulatory approvals and other matters.
For a discussion of additional factors that could cause actual
results to differ from those described in the forward-looking
statements, see the company's Annual Report on Form 10-K for
the fiscal year ended June 30, 2001 as filed with the Securities
and Exchange Commission.
Return
to headlines
Completes Acquisition
of SERCA Foodservice From Sobeys Inc.
HOUSTON, April 1, 2002--SYSCO Corporation (NYSE:SYY), North
America's largest foodservice marketer and distributor, announced
today it has completed the acquisition of SERCA Foodservice
from Sobeys Inc. (TSE:SBY). SYSCO and Sobeys also jointly
announced the completion of the sale of SERCA's British Columbia
operations to Gordon Food Service. Both transactions were
consummated effective March 30, 2002.
SERCA, headquartered in Toronto, is one of the largest operators
in the North American foodservice industry. Exclusive of the
British Columbia operations, the company supplies about 100,000
food products, as well as foodservice supplies and equipment,
to approximately 65,000 customers, including restaurants,
hotels, fast food chains, educational facilities and health
care locations. It also operates 18 distribution companies
throughout Canada and is supported by approximately 3,200
employees. The operations acquired by SYSCO will operate under
the name SYSCO SERCA Food Services Inc.
Charles H. Cotros, SYSCO's chairman and chief executive officer,
said, ``SERCA Foodservice is a tremendous addition to our
organization and will assist in our effort to expand our presence
in Canada. Like SYSCO, SERCA has built its reputation based
on a commitment to provide excellent products and unsurpassed
customer service. We welcome the SERCA team to our family
and look forward to the opportunities they will provide us
in Canada.''
Richard J. Schnieders, SYSCO's president and chief operating
officer, noted the synergies provided by the acquisition in
the approximately CAD$14 billion (US$9 billion) Canadian foodservice
distribution market. ``Prior to this acquisition, our operations
were located primarily in the western region of Canada,''
said Mr. Schnieders. ``The breadth of market coverage that
SERCA provides bodes well for SYSCO's future growth strategies
in Canada. Procurement opportunities exist for our new and
existing customers and suppliers, and those opportunities
will be supported by our combined and enhanced distribution
network strengths. In addition,'' concluded Mr. Schnieders,
``we have entered into a strategic alliance with Sobeys and
we look forward to working with them and exploring opportunities
together.''
In connection with its acquisition of SERCA, SYSCO also announced
that Bruce Soltis will serve as SYSCO's senior vice president
of Canadian Foodservice Operations, and that Gary Seaman,
SERCA's current CEO, will serve as president and CEO of SYSCO
SERCA Food Services Inc.
Bill McEwan, president and chief executive officer of Sobeys
Inc., said the transaction is beneficial for Sobeys' and SYSCO's
customers, shareholders and employees. ``The sale of SERCA
strengthens our financial position and allows us to focus
on growing our core retail business. It is a win-win situation
for all parties involved.''
JPMorgan Securities Inc. served as financial advisor to SYSCO
in connection with the acquisition.
Gordon Food Service, a 103-year-old, family owned and managed,
broadline foodservice distributor, is based in Grand Rapids,
Mich. The company's distribution network services 30,000 customers
with over 12,000 products in 12 states and six Canadian provinces.
Headquartered in Stellarton, Nova Scotia, Sobeys Inc. is
Canada's second largest retail grocer and distributor. Sobeys
operates over 1,300 corporate and franchise stores in all
10 provinces under a range of retail banners, including Sobeys,
IGA, Garden Market IGA, IGA extra and Price Chopper. The company
achieved overall sales of CAD$11.37 billion for its fiscal
year ended May 5, 2001.
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating sales of approximately
$22.6 billion for calendar year 2001, the company provides
products and services to about 370,000 customers, including
restaurants, healthcare and educational institutions, lodging
establishments and other foodservice operations. The SYSCO
distribution network, supported by more than 43,000 employees,
currently extends throughout the entire contiguous United
States, and portions of Alaska, Hawaii and Canada.
Forward-Looking Statements
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding expected benefits of the
SERCA acquisition and the strategic alliance with Sobeys.
These statements are based on management's current expectations
and estimates; actual results may differ materially due to
certain risks and uncertainties. For example, SYSCO's ability
to achieve expected results may be affected by competitive
price pressures, availability of supplies, work stoppages,
failure of SYSCO to successfully integrate SERCA's operations,
failure of the combined company to retain key executives and
other personnel, conditions in the economy, including the
current economic condition, industry growth and internal factors,
such as the ability to control expenses. For a discussion
of additional factors affecting SYSCO, see SYSCO's Annual
Report on Form 10-K for the fiscal year ended June 30, 2001,
as filed with the Securities and Exchange Commission.
Return
to headlines
CompletesRichard
J. Schnieders to Become Chairman and CEO
HOUSTON, March 18, 2002, -- SYSCO Corporation (NYSE:SYY),
North America's largest foodservice marketer and distributor,
today announced that Richard J. Schnieders, currently president
and chief operating officer of the company, has been elected
chairman and chief executive officer effective Jan. 1, 2003.
Mr. Schnieders will succeed Charles H. Cotros, who is retiring
from the company on Dec. 31, 2002, after a distinguished 43-year
career in the foodservice distribution industry, including
28 years with SYSCO in various management and executive positions.
Mr. Schnieders' election is in accordance with the company's
planned succession of management.
"The industry we serve is now approaching $200 billion annually
and I am bullish on the future of our industry," Mr. Schnieders
said. "I am equally excited about the opportunities that lay
ahead for SYSCO. The foodservice industry remains a dynamic
force in the North American economy, and our ability to offer
innovative services, as well as quality assured products to
help our customers be more successful, has allowed us to maintain
our position as North America's leading foodservice distributor.
Through the combined efforts of our 43,000 valued employees,
SYSCO's core strategies and our current initiatives for future
growth, we are targeting a goal of $50 billion in sales by
2008.
"On a personal note," he continued, "I am extremely excited
about becoming SYSCO's fifth chief executive officer in its
33-year history. Charles Cotros was the gentleman who hired
me when I began my SYSCO career in 1982, and I am grateful
to him for the guidance and wisdom he has shared with me throughout
the last 20 years, and commend his contributions to SYSCO
and our industry. When he was named a corporate officer in
1988, the foodservice distribution market was approximately
$80 billion and SYSCO, as the industry leader, had sales of
approximately $4 billion. Today, the market we serve has more
than doubled, while SYSCO's sales have increased approximately
460 percent to $21.8 billion for fiscal 2001."
As he reflected on his own foodservice career, Mr. Cotros
agreed with Mr. Schnieders' assessment of the industry's future,
noting that with each passing year, meals-prepared-away-from-home
have become an increasing necessity. "I personally have witnessed
an amazing shift in the dining habits of North American consumers
during the past 43 years," he said. "Since its inception in
1969, SYSCO consistently has broadened its menu of products
and services to satisfy consumers' appetites. Today, dining
out is considered not only entertainment but also an essential
part of daily life as individuals balance their personal and
professional obligations. SYSCO is well-positioned to continue
its performance as the industry leader and I am confident
that, under Rick's guidance, SYSCO's future is solid. I consider
myself fortunate to have been a part of the evolution of our
industry and our company, and I have been blessed with many
valued and trusted friendships along the way."
Mr. Schnieders, 54, joined SYSCO's Memphis, Tenn. operation
in 1982 in the executive development program. He subsequently
served as director of supplies and equipment, vice president
of merchandising and executive vice president. In 1988 he
was promoted to president and chief executive officer of the
Memphis operation and later became chairman of that company.
In 1992 Mr. Schnieders transferred to SYSCO's corporate
headquarters as senior vice president of merchandising services.
He assumed additional responsibility for multi-unit sales
in 1997, was elected to SYSCO's board of directors later that
year, and in 1998 he progressed to executive vice president
of foodservice operations. He was named SYSCO's chief operating
officer in January of 2000 and in July he assumed added responsibilities
as president of the corporation. He also is a member of the
board of directors of Aviall Inc.
Mr. Schnieders, a native of Remsen, Iowa, graduated in 1970
from the University of Iowa, located in Iowa City, with a
bachelor of arts degree in mathematics. He and his wife Beth
are the parents of two grown daughters and reside in Houston.
Mr. Cotros, 64, began his career in the foodservice industry
in 1960 with his family's business, Tri-State General Food
Supply. After the company merged with SYSCO in 1974 he served
as president of the Memphis operation from 1975 to 1977 and
1982 to 1988. During the 1977 to 1982 interim he was president
of SYSCO's Jackson, Miss. operation. Upon returning to Memphis
in 1982, he was that operation's chief executive officer while
simultaneously serving as chairman of SYSCO companies in Arkansas,
Louisiana, Mississippi and Kentucky. Mr. Cotros was elected
a member of SYSCO's board of directors in 1986 and in 1988
was appointed executive vice president of the corporation
and president, foodservice operations. He was elected chief
operating officer of SYSCO in 1995 and assumed the additional
role of president of the corporation in 1999. Mr. Cotros became
chief executive officer in January 2000 and in July 2000 he
was elected chairman of the board.
A native of Memphis, Tenn., Mr. Cotros is a 1960 graduate
of Christian Brothers College, where he has served on the
Board of Trustees since 1992. He is a member of the board
of directors of AmerisourceBergen Corporation, and the Greater
Houston Partnership. He and his wife Connie have three grown
children and nine grandchildren and are residents of Houston.
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating sales of approximately
$22.6 billion for calendar year 2001, the company provides
products and services to about 370,000 customers, including
restaurants, healthcare and educational institutions, lodging
establishments and other foodservice operations. The SYSCO
distribution network of 125 operations, supported by more
than 43,000 employees, currently extends throughout the entire
contiguous United States, Alaska and Hawaii as well as portions
of Canada.
Forward-Looking Statements
Certain statements made herein are forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
They include statements regarding future sales growth, industry
growth and SYSCO's ability to continue its performance as
industry leader. These statements involve risks and uncertainties
and are based on management's current expectations and estimates;
actual results may differ materially. Those risks and uncertainties
that could impact these statements include the risks relating
to the foodservice distribution industry's relatively low
profit margins and sensitivity to general economic conditions,
including the current economic downturn; SYSCO's leverage
and debt risks; the successful completion of acquisitions
and integration of acquired companies; the risk of interruption
of supplies due to lack of long-term contracts, severe weather,
work stoppages or otherwise; and internal factors such as
the ability to control expenses. For a discussion of additional
factors that could cause actual results to differ from those
described in the forward-looking statements, see the Company's
Annual Report on Form 10-K for the fiscal year ended June
30, 2001 as filed with the Securities and Exchange Commission.
Return
to headlines
Henry D. Varnell
Appointed President and CEO
HOUSTON, February 15, 2002--SYSCO Corporation (NYSE:SYY),
North America's largest foodservice marketer and distributor,
announced today that Henry D. Varnell III has been named president
and chief executive officer of Sysco Food Services of Central
Florida, a SYSCO subsidiary located in Orlando, and Marlin
Turner has been promoted to executive vice president of that
operation. Mr. Varnell, currently executive vice president
of the Orlando facility, will succeed Stephen F. Smith, who
has been named senior vice president of operations, southeast
region for SYSCO. All assignments are effective June 30, 2002,
the start of SYSCO's fiscal year 2003.
Richard J. Schnieders, SYSCO's president and chief operating
officer, said Mr. Varnell, 42, joined SYSCO in 1988 as a marketing
associate at its Memphis subsidiary, Hardin's-Sysco Food Services,
Inc., where he progressed to district sales manager in 1991.
He transferred to the Arizona operation in 1993 as general
sales manager, was promoted to vice president of territory
sales later that same year, and in 1996 was named senior vice
president of sales. In 1997 Mr. Varnell moved to the Orlando
operating company and was promoted to his current duties.
Mr. Varnell was born in Little Rock, Ark. and moved to Memphis
shortly thereafter. He earned a bachelor of science degree
in international business from Memphis State University in
1985. He and his wife, Margaret, have two daughters and a
son and reside in Orlando, where he also serves on several
community boards including The House of Hope, a rehabilitation
home for troubled teens.
Mr. Turner, 49, began his foodservice career in 1970 as
an order selector at the predecessor company to Hardin's-Sysco
Food Services, Inc. In the ensuing 25 years he held various
management positions including night warehouse manager, day
warehouse manager, transportation manager and director of
operations. In 1996 he transferred to Sysco Food Services
of Central Florida as vice president of operations and in
2001 was appointed to his current position as senior vice
president of operations. Mr. Turner also served on SYSCO's
Operations Council from 1998 to 2001.
A native of Memphis, Tenn., Mr. Turner attended Shelby State
College in Memphis and Valencia College in Orlando, Fla. He
and his wife, Dallie, have two grown children and reside in
Orlando.
Sysco Food Services of Central Florida, Inc. markets and
distributes a complete line of food and related products to
foodservice operators throughout the central portion of Florida.
Customers include restaurants, healthcare and educational
facilities, lodging establishments, business and industry
locations and other foodservice operators.
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating sales of approximately
$22.6 billion for calendar year 2001, the company provides
products and services to about 370,000 customers, including
restaurants, healthcare and educational institutions, lodging
establishments and other foodservice operations. The SYSCO
distribution network, supported by more than 43,000 employees,
currently extends throughout the entire contiguous United
States, Alaska and Hawaii as well as portions of Canada.
Return
to headlines
Declares Regular
Quarterly Dividend
HOUSTON, February 08, 2002--SYSCO Corporation (NYSE:SYY -
news) today declared a regular quarterly cash dividend of
$0.09 per share, payable on April 26, 2002, to common shareholders
of record at the close of business on April 5, 2002.
SYSCO is the largest foodservice marketing and distribution
organization in North America, providing food and related
products and services to about 370,000 customers. The SYSCO
distribution network, supported by more than 43,000 employees,
currently extends throughout the entire contiguous United
States, Alaska and Hawaii, as well as portions of Canada.
For the first half of fiscal 2002, which ended Dec. 29, 2001,
the company reported sales of $11.4 billion and net earnings
of $322.5 million.
Return
to headlines
