on Monday, Aug. 11,
2003, beginning at
10:00 a.m. (EST).
The online replay
will be available
at approximately 1:00
p.m. (EST) and remain
archived until Friday,
Sept. 5.
SYSCO, the largest foodservice
marketing and distribution
organization in North
America, generated
sales of $24.7 billion
for calendar year
2002. The company's
147 distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
Return
to headlines
To Open Fold-Out
Facility in Fargo,
North Dakota;
Mark T. Lanctot to
Become General Manager
HOUSTON,
June 30, 2003--SYSCO
Corporation (NYSE:SYY),
North America's largest
foodservice marketer
and distributor, announced
today it will open
a broadline distribution
"fold-out" facility
in Fargo, N.D. The
new company, which
will be named Sysco
Food Services of North
Dakota Inc., is expected
to be operational
in the spring of 2004.
SYSCO also announced
that 20-year company
veteran Mark T. Lanctot,
who is currently vice
president of business
development at SYSCO's
St. Paul, Minn., distribution
facility, will become
general manager of
the North Dakota "fold-out"
operation.
The warehouse and 12
acres of land that
SYSCO purchased for
the new "fold-out"
company are located
at the intersection
of Interstate 29 and
12th Avenue in Fargo.
The warehouse contains
dry, cooler and freezer
storage areas as well
as office space. The
operation is the company's
thirteenth announced
"fold-out" -- a strategy
first implemented
in 1995.
Richard J. Schnieders,
SYSCO's chairman and
chief executive officer,
said, "Our 'fold-out'
companies have been
a very successful
component of SYSCO's
internal growth strategies
and our commitment
to helping our customers
succeed. The strategy
of opening 'fold-outs'
in our larger markets
continues to be viable
and will now be complemented
by an approach that
seeks similar opportunities
in smaller foodservice
markets. The North
Dakota market is characteristic
of such a region and
will serve as a prototype
for future 'fold-out'
prospects in smaller,
yet equally vibrant,
foodservice markets."
"Once the North Dakota
company is operational,
our customers will
benefit by receiving
more localized service,"
continued Mr. Schnieders.
"SYSCO will benefit
from two areas of
expense reduction,
including cost reductions
associated with being
in closer proximity
to customers' locations,
as well as the ability
to delay warehouse
expansions at those
SYSCO companies that
currently supply foodservice
operators in the North
Dakota markets."
Thomas E. Lankford, SYSCO's
president and chief
operating officer,
said Mr. Lanctot,
42, has spent his
entire professional
career at Sysco Food
Services of Minnesota,
beginning in 1983
as an account executive
and then becoming
a marketing associate
the following year.
In 1988 he was promoted
to district sales
manager, became regional
sales director in
1992, vice president
of territory sales
in 1996 and in 2002
was named to his current
position.
Mr. Lanctot was born
in St. Paul and raised
in White Bear Lake,
Minn. He is a 1983
graduate of the University
of Minnesota, where
he earned a bachelor
of science degree
in business. He and
his wife, Linda, have
three sons and will
relocate to the Fargo
area in the near future.
Sysco Food Services of
North Dakota Inc.,
will provide products
and services to foodservice
operations including
restaurants, healthcare
and educational institutions,
lodging establishments,
business and industry
locations, multi-unit
chain accounts and
other foodservice
operations in North
Dakota and portions
of South Dakota and
Minnesota.
SYSCO is the largest
foodservice marketing
and distribution organization
in North America,
generating sales of
$24.7 billion for
calendar year 2002.
The company's 147
distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
Return
to headlines
Ehehalt to Become
EVP of Sysco Food
Services of Hampton
Roads Inc.
HOUSTON,
May 15, 2003--SYSCO
Corporation (NYSE:SYY),
North America's largest
foodservice marketer
and distributor, today
announced that John
G. Ehehalt has been
named executive vice
president of Sysco
Food Services of Hampton
Roads Inc., a SYSCO
subsidiary located
in Suffolk, Va. Mr.
Ehehalt, currently
senior vice president
of sales for that
operation, will assume
his new duties effective
June 29, 2003, the
beginning of SYSCO's
fiscal year 2004.
Thomas E. Lankford, president
and chief operating
officer of SYSCO,
said Mr. Ehehalt,
47, began his SYSCO
career in 1988 as
district sales manager
for the company's
Pocomoke, Md., subsidiary,
progressing to regional
vice president for
that operation in
1995. In 2001 Mr.
Ehehalt relocated
to Sysco Food Services
of Hampton Roads as
vice president of
sales and last year
he advanced to his
current position.
Mr. Ehehalt is a native
of York, Pa. He is
a 1979 graduate of
Penn State University,
located in State College,
Pa., where he earned
a bachelor of science
degree in foodservice.
He and his wife, Kathryn,
have a son and a daughter
and reside in Virginia
Beach.
Sysco Food Services of
Hampton Roads provides
products and services
to foodservice operations
including restaurants,
country clubs, healthcare
and educational institutions,
business and industry
locations, lodging
establishments, multi-unit
chain accounts and
other foodservice
operations in southeast
Virginia and portions
of North Carolina.
SYSCO is the largest
foodservice marketing
and distribution organization
in North America,
generating sales of
$24.7 billion for
calendar year 2002.
The company's 147
distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
Return
to headlines
Posts Record Sales
Week
HOUSTON,
May 15, 2003--SYSCO
Corporation (NYSE:SYY),
North America's largest
foodservice marketer
and distributor, today
announced it generated
record sales of $577.6
million during the
week ended May 10,
2003.
Richard J. Schnieders,
SYSCO's chairman and
chief executive officer,
said, "Mother's Day
is one of the most
popular days of the
year for people to
enjoy meals that are
prepared away from
home and often results
in a record sales
week for SYSCO. The
National Restaurant
Association estimates
that approximately
38 percent of the
population treats
Mom to a meal away
from home on her special
day. This year was
no exception, and
SYSCO benefited from
this act of appreciation
that children, grandchildren,
husbands, fathers
and others displayed
towards the special
women in their lives."
Mr. Schnieders also noted
that SYSCO's real
sales growth for the
first six weeks of
the fourth quarter
increased 7.6 percent
compared to the same
period last year.
Real sales exclude
1.8 percent growth
from recent acquisitions
and 0.8 percent growth
attributable to inflation
from total sales growth
of 10.2% for the period.
"We are at the mid-point
of the final quarter
for our fiscal year
2003, and we have
been able to build
on the momentum that
we developed during
the third quarter,"
continued Mr. Schnieders.
"Our growth strategies
are sound and have
produced results in
line with our expectations.
We have continued
to gain market share
and we remain focused
on helping our customers
succeed."
SYSCO, the largest foodservice
marketing and distribution
organization in North
America, generated
sales of $24.7 billion
for calendar year
2002. The company's
147 distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
Return
to headlines
Day Appointed Vice
President of Supply
Chain Management at
SYSCO Corporation
HOUSTON,
May 14, 2003--SYSCO
Corporation (NYSE:SYY),
North America's largest
foodservice marketer
and distributor, today
announced that William
B. Day has been named
vice president, supply
chain management,
a newly created position.
Mr. Day, who currently
is assistant controller
at SYSCO, has been
instrumental in leading
SYSCO's supply chain
strategy for the past
3 years and will be
responsible for the
company's supply chain
and redistribution
initiatives in his
new position. He will
assume his new duties
effective June 29,
2003, the beginning
of SYSCO's fiscal
year 2004.
Thomas E. Lankford, president
and chief operating
officer of SYSCO,
said Mr. Day, 46,
began his 20-year
SYSCO career as a
staff accountant at
SYSCO's Memphis, Tenn.,
operation in 1983.
The following year
he transferred to
the corporate headquarters
in Houston as a staff
auditor in the operations
review department.
In 1985 he transferred
to SYSCO's Atlanta
subsidiary as vice
president of finance,
a position he held
until 1987 when he
again relocated to
Houston as manager
of operations review
at SYSCO's corporate
office. Mr. Day was
named director of
operations review
in 1990 and in 1991
was promoted to director
of systems development
-- applications. In
that role, he also
served as project
leader for SYSCO Uniform
Systems (SUS), which
was a total redevelopment
of SYSCO's entire
computer system. Upon
completion and pilot
rollout of the SUS
project in 1995, Mr.
Day was promoted to
controller of SYSCO
merchandising services
-- financial services
and in 1999 he was
promoted to his current
position.
Mr. Day was born in Humboldt,
Tenn., and raised
in Memphis and northern
Mississippi. He received
a bachelor of science
degree in 1983, graduating
Magna Cum Laude, from
Christian Brothers
University in Memphis.
Mr. Day is a Certified
Internal Auditor (CIA)
and represents SYSCO
Corporation as a member
of the Global Supply
Chain Forum. He and
his wife, Twila, have
five children and
reside in Richmond,
Texas.
SYSCO is the largest
foodservice marketing
and distribution organization
in North America,
generating sales of
$24.7 billion for
calendar year 2002.
The company's 147
distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
Return
to headlines
Declares Regular
Quarterly Dividend
HOUSTON,
May 9, 2003--SYSCO
Corporation (NYSE:SYY)
today declared a regular
quarterly cash dividend
of $0.11 per share,
payable on July 25,
2003, to common shareholders
of record at the close
of business on July
3, 2003.
SYSCO is the largest
foodservice marketing
and distribution organization
in North America,
generating sales of
$24.7 billion for
calendar year 2002.
The company's 147
distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers. For the
first 39 weeks of
fiscal 2003, which
ended March 29, 2003,
the company reported
sales of $19.2 billion
and net earnings of
$535.6 million.
Return
to headlines
Posts 13.0% EPS
Gain for Third Quarter
of Fiscal 2003
HOUSTON,
April 28, 2003--SYSCO
Corporation (NYSE:SYY),
North America's largest
foodservice marketer
and distributor, today
announced results
for its third quarter
of fiscal year 2003
ended March 29, 2003.
Third Quarter Highlights:
-- Diluted earnings
per share rose 13.0%
to $0.26 compared
to $0.23 in the same
period last year
-- Net earnings increased
11.2% to $168.4 million
vs. $151.4 million
in last year's third
quarter
-- Sales for the quarter
grew 13.8% to $6.4
billion vs. $5.6 billion
last year
-- Real sales growth
for the third quarter
was 5.7%
-- SYSCO Brand items,
excluding Canadian
operations, accounted
for 56.3% of marketing
associate-served sales
compared to 55.7%
last year
-- SYSCO Brand items,
excluding Canadian
operations, represented
48.2% of all traditional
broadline company
sales compared to
48.1% in last year's
third quarter
-- Excluding Canadian
operations, Marketing
associate-served sales
as a percentage of
traditional broadline
sales were 53.9% compared
to 54.0% in the same
period last year
Commenting on the third
quarter, Richard J.
Schnieders, SYSCO's
chairman and chief
executive officer,
said, "I am proud
of our entire family
of 47,000 associates
and the earnings they
helped SYSCO achieve
during a quarter marked
by numerous challenges.
The record snowfalls
experienced across
the East Coast and
Colorado, and the
harsh weather suffered
in the Midwestern
states, made this
one of the most difficult
third quarters in
recent history. In
addition, the onset
of war in Iraq, coupled
with the slowdown
in business and leisure
travel that typically
benefits foodservice
operators, made for
a very challenging
operating environment
for us throughout
the quarter.
"The third quarter was
also unique due to
the industry attention
devoted to allegations
concerning one of
our competitors and
the resulting distractions
that it brought to
the marketplace,"
Mr. Schnieders continued.
"However, the professionalism
of our associates
and their dedication
to our customers allowed
SYSCO to achieve solid
sales and earnings
gains and record its
108th consecutive
quarter of sales and
earnings increases."
Mr. Schnieders concluded
his remarks by noting
that SYSCO had an
all-time record sales
week in week 10 of
the third quarter
and also began its
fourth fiscal quarter
with another record
sales week. "Sales
for the first week
of the fourth quarter
were $536.4 million,
2.7 percent higher
than the previous
record," he said.
"The solid sales gains
achieved in March
have carried into
our final quarter."
Sales for the quarter
grew 13.8% to $6.4
billion from $5.6
billion in last year's
third quarter. SYSCO's
third quarter real
sales growth of 5.7
percent, or total
sales growth adjusted
for 0.8 percent food
cost inflation and
7.3 percent sales
growth from acquisitions,
represented a three
percentage point improvement
compared to the 2.7
percent real sales
growth reported in
the same period last
year. Sales for the
first 39 weeks of
fiscal 2003 grew 12.5%
to $19.2 billion from
$17.0 billion for
the first 39 weeks
last year. Through
the first 39 weeks
of fiscal 2003, SYSCO's
real sales increased
6.8 percent (total
sales growth adjusted
for 0.8 percent deflation
and 6.5 percent sales
growth from acquisitions)
compared to 1.8 percent
real sales growth
during last year's
first 39 weeks.
Thomas E. Lankford, SYSCO's
president and chief
operating officer,
said, "During the
third quarter we were
able to improve our
operating efficiencies,
reducing overall operating
expenses as a percentage
of sales by 10 basis
points. This was primarily
a result of our technology
systems, especially
the SYSCO Order Selector
(SOS) and our delivery
vehicle routing systems.
The SOS unit has been
very successful in
reducing the occurrence
of inaccurate orders,
and with our routing
systems mapping the
most efficient delivery
routes, we continue
to post significant
improvements in the
performance areas
most important to
our customers as well
as internal performance
metrics, including
pieces per stop, lines
per stop, pieces per
trip and pieces per
mile.
"During the third quarter,"
added Mr. Lankford,
"we also continued
our product and geographic
expansion. Specifically,
we signed a letter
of intent to acquire
the meat cutting division
and certain broadline
assets from the Colorado
Boxed Beef Company
(Auburndale, Fla.),
a deal that was completed
last week. During
the last quarter we
also announced an
agreement to acquire
Reed Distributors
(Lewiston, Maine),
a paper and chemical
distribution company
to the foodservice
industry, and that
acquisition should
be completed in early
May.
Mr. Lankford also stated
that the construction
of SYSCO's Northeast
Redistribution Center
and the fulfillment
of all associated
staffing and networking
needs are progressing
according to plan.
Located near Front
Royal, Va., SYSCO's
Northeast Redistribution
Center is expected
to be operational
in the summer of 2004
and will receive and
redistribute food
and food-related products
to 14 SYSCO operating
companies in the Northeast.
Total cash expended
for the National Supply
Chain project has
been $59.6 million
since the initiative
began in fiscal 2002.
Of that figure, $29.6
million has been expensed
and the remainder
has been capitalized.
During the recently
completed quarter,
expenses for the project
amounted to $4.5 million
for a cumulative $14
million during fiscal
year 2003. When the
Northeast Redistribution
Center is completed
and operational, total
cash expenditures
for this phase of
the National Supply
Chain project are
expected to be between
$275 million and $325
million, which includes
developmental costs
and information technology
systems which will
benefit a nationwide
rollout. Approximately
75 percent of this
amount is capitalizable.
Capitalized costs
for any future redistribution
center in other regions
are expected to range
between $65 million
and $75 million.
"SYSCO is uniquely positioned,
in terms of our financial
strength, our national
presence and our supply
chain expertise and
proficiencies, to
successfully undertake
this initiative,"
Mr. Lankford continued.
"Once the facility
is operational, we
expect to begin achieving
significant reductions
in inventory at the
local operating companies
as we transition product
flow and safety stock
to the redistribution
center. The redistribution
center will also free
capacity at our operating
companies throughout
the region, postponing
investments in warehouse
expansion.
"Our expansion efforts
and growth strategies
have proven to be
sound and successful,"
concluded Mr. Lankford.
"SYSCO is positioned
for continued growth
as we help our customers
succeed in the $200
billion industry we
serve."
SYSCO is the largest
foodservice marketing
and distribution organization
in North America,
generating sales of
$24.7 billion for
calendar year 2002.
The company's 147
distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
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 grow its business,
control or reduce
expenses and increase
operating efficiencies,
and statements regarding
the timing, cost and
expected benefits
of the Northeast Redistribution
Center and the national
supply chain project.
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; risks relating
to the successful
completion of acquisitions
and fold-outs and
integration of acquired
companies; risks and
uncertainties relating
to the successful
completion of the
Northeast Redistribution
Center; 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
To Webcast Third
Quarter Earnings Conference
Call
HOUSTON--April
21, 2003--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 third quarter
fiscal 2003 earnings
conference call.
The live webcast of
SYSCO's quarterly
conference call will
be available online
at www.sysco.com on
Monday, April 28,
2003, beginning at
10:00 a.m. (EST).
The online replay
will be available
at approximately 1:00
p.m. (EST) and remain
archived until Friday,
May 23.
SYSCO, the largest foodservice
marketing and distribution
organization in North
America, generated
sales of $24.7 billion
for calendar year
2002. The company's
146 distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
Return
to headlines
To Acquire Certain
Assets from the Colorado
Boxed Beef Company
HOUSTON, March 28, 2003--SYSCO
Corporation (NYSE:SYY)
today announced it
has signed a letter
of intent to acquire
the specialty meat-cutting
division of the Colorado
Boxed Beef Company
and its affiliated
broadline foodservice
operation, J&B Foodservice.
The purchase is expected
to close by the end
of April.
Located in Auburndale,
Fla., the Colorado
Boxed Beef Company
purchases, warehouses,
and distributes beef,
pork, lamb, poultry,
fish, and select dairy
products. The net
assets SYSCO will
acquire generated
approximately $76
million in sales for
the fiscal year that
ended March 31, 2002
and employ approximately
150 people. Howard
Halpern, president
and chief executive
officer of SYSCO's
Buckhead Beef subsidiary
in Atlanta, will assume
the added duties as
chairman of the meat-cutting
company, which will
be known as Buckhead
Beef of Florida once
the acquisition is
completed.
Richard J. Schnieders,
SYSCO's chairman and
chief executive officer,
said, "Since 1999
we have pursued a
successful strategy
of enhancing our specialty
meat product offerings
to include consistent,
custom-cut steaks,
chops and other protein
items. One result
of that strategy has
been an overwhelming
strength and acceptance
of our Buckhead Beef
and Butcher's Block
brands, and the addition
of the assets from
Colorado Boxed Beef
will further strengthen
our efforts and our
customers' menu offerings
throughout the Florida
market."
Not included in the purchase
are Colorado Boxed
Beef's business segments
serving cruise lines,
retail boxed beef
distribution, New
Generation irradiated
products or its custom
distribution unit.
These segments will
retain the Colorado
Boxed Beef corporate
identity.
SYSCO, the largest foodservice
marketing and distribution
organization in North
America, generated
sales of $24.7 billion
for calendar year
2002. The company's
146 distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
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 certain assets
of the Colorado Boxed
Beef Company. 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
the acquired business
and SYSCO 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 the
acquired 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
To Present at Banc
of America Consumer
Conference
HOUSTON, March 24, 2003--SYSCO
Corporation (NYSE:SYY)
North America's largest
foodservice marketer
and distributor, announced
today that its presentation
at the Banc of America
Consumer Conference
will be broadcast
live via the Internet
at 8:50 a.m. (EST)
on Tuesday, April
1, 2003.
This presentation, to
be delivered by Richard
J. Schnieders, SYSCO's
chairman and chief
executive officer,
can be accessed at
SYSCO's Web site (www.sysco.com).
The webcast is anticipated
to end by 9:30 a.m.
(EST), and will remain
archived on the above
Web page until Friday,
April 18.
SYSCO, the largest foodservice
marketing and distribution
organization in North
America, generated
sales of $24.7 billion
for calendar year
2002. The company's
146 distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
Return
to headlines
Posts Record Sales
Week
HOUSTON, March 19, 2003--SYSCO
Corporation (NYSE:SYY),
North America's largest
foodservice marketer
and distributor, today
announced that during
the week ended March
8, 2003, it achieved
record sales of $522.5
million.
Richard J. Schnieders,
SYSCO's chairman and
chief executive officer,
said, "Through the
dedication of our
entire family of 48,000
associates, SYSCO
has been able to assist
customers during some
of the harshest weather
in recent years and
reaffirm our commitment
to help our customers
succeed. Our efforts
were rewarded last
week with strong top-line
sales and with an
equally strong real
sales growth performance
through week 10 of
our third quarter."
Mr. Schnieders noted
that real sales growth,
which does not include
sales by recent acquisitions
or the added sales
volume attributable
to inflation, was
5.6 percent through
the first 10 weeks
of the third quarter.
"Despite the uncertain
environment that our
industry and our country
currently face, we
have been able to
sustain our performance
during the third quarter,"
continued Mr. Schnieders.
"This is due to a
persistent focus on
helping our customers
succeed. Our growth
strategies remain
fundamentally solid
and are producing
results in line with
our expectations."
SYSCO, the largest foodservice
marketing and distribution
organization in North
America, generated
sales of $24.7 billion
for calendar year
2002. The company's
146 distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
Return
to headlines
Sales Growth Continues
Strong Despite Inclement
Weather in North America
HOUSTON, March 6, 2003--SYSCO
Corporation (NYSE:SYY),
North America's largest
foodservice marketer
and distributor, said
today that top line
sales growth through
the first nine weeks
of the third quarter
is trending at approximately
the same rate as the
second quarter. Quarter
to date sales are
up more than 13 percent
over the same period
last year, despite
an estimated one percent
impact due to the
effect of inclement
weather in its distribution
areas.
Thomas E. Lankford,
SYSCO's president
and chief operating
officer, said, "The
third quarter typically
is our most challenging
due to unpredictable
winter weather, and
this winter has been
worse than those of
the past few years.
During times like
these, we focus on
providing the best
service possible to
our customers, even
though we may experience
some higher costs
to deliver products.
On the other hand,
March usually is the
strongest month of
the third quarter
and typically produces
approximately 50 percent
of the sales and profitability
in the quarter. We
are optimistic that
our real growth (sales
growth excluding acquisitions
and inflation) will
continue at least
at a mid-single digit
pace if there is milder
weather through the
rest of the quarter
and a relatively stable
political climate."
In addressing recent
industry accounting
concerns, Richard
J. Schnieders, chairman
and chief executive
officer of SYSCO,
stated, "Vendor allowance
accounting is not
an issue at SYSCO.
Since the release
of our fiscal 2003
second quarter 10-Q,
we have evaluated
the provisions of
Emerging Issues Task
Force (EITF) 02-16
"Accounting by Customers
for Cash Considerations
Received From a Vendor,"
and found that our
policies, which have
been in place for
many years, are consistent
with EITF 02-16,"
Mr. Schnieders said.
"SYSCO's accounting
policies related to
the timing of income
recognition of vendor
allowances are consistent
with Generally Accepted
Accounting Principles
(GAAP). SYSCO records
vendor allowances,
net of any related
expenses, as a reduction
of cost of goods sold
in the period when
the activities are
completed (e.g., food
shows), thresholds
are met, or when the
products are sold
for which the promotional
allowances are given,"
he continued.
"Promotional allowances
are fundamental to
many industries throughout
the country," he noted.
"They are common not
only in our industry,
but also in pharmaceutical
wholesaling, retail,
automobile and other
industries. SYSCO
places significant
focus on the oversight
of proper accounting
of these allowances,
including ongoing
external and internal
auditor reviews. As
a matter of fact,
when we changed auditors
in fiscal 2002, our
new auditors examined
not only 2002 financial
statements, but also
the prior two years,
and no changes resulted
from these audits.
Finally, we have unique
financial controls
that provide us with
many operational and
financial metrics
on a weekly basis,
allowing us to closely
monitor the activities
of our operating companies.
Our vendor allowance
accounting policies
and procedures are
appropriate," he said.
In conclusion, Mr. Lankford
said, "We are especially
pleased with the continuing
growth in our independent
customer base. SYSCO,
as the market leader,
has the resources,
systems and talent
to outperform as it
has done in previous
challenging environments
and we view this time
as an opportunity
to increase our market
share."
SYSCO is the largest
foodservice marketing
and distribution organization
in North America,
generating sales of
$24.7 billion for
calendar year 2002.
The company's 146
distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
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, control
or reduce expenses,
increase operating
efficiencies 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; the impact
that war in Iraq would
have on the U.S. economy;
SYSCO's leverage and
debt risks; the successful
completion of acquisitions
and fold-outs and
integration of acquired
companies; the risk
of interruption of
supplies due to lack
of long-term contracts,
severe weather, work
stoppages or otherwise;
severe weather conditions,
particularly in the
month of March; the
ability of the redistribution
warehouse to achieve
expected efficiencies;
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.
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to headlines
Declares Regular
Quarterly Dividend
HOUSTON, February 7,
2003--SYSCO Corporation
(NYSE:SYY) today declared
a regular quarterly
cash dividend of $0.11
per share, payable
on April 25, 2003,
to common shareholders
of record at the close
of business on April
4, 2003.
SYSCO is the largest
foodservice marketing
and distribution organization
in North America,
generating sales of
$24.7 billion for
calendar year 2002.
The company's 149
distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers. For the
first half of fiscal
2003, which ended
Dec. 28, 2002, the
company reported sales
of $12.8 billion and
net earnings of $367.1
million.
Return
to headlines
Achieves 16.7%
Rise in Second Quarter
EPS
HOUSTON, January 27,
2003--SYSCO Corporation
(NYSE:SYY), North
America's largest
foodservice marketer
and distributor, today
announced results
for its second quarter
of fiscal year 2003
ended December 28,
2002.
Second Quarter Highlights:
-- Diluted earnings
per share rose 16.7%
to $0.28 compared
to $0.24 in the same
period last year
-- Net earnings increased
16.4% to $185 million
vs. $159 million in
last year's second
quarter
-- Sales for the quarter
grew 13.6% to $6.3
billion vs. $5.6 billion
last year
-- Real sales growth
for the second quarter
was 7.6%
-- Marketing associate-served
sales as a percentage
of traditional broadline
sales increased to
54.7% from 54.1% in
the same period last
year
-- SYSCO Brand items
accounted for 54.7%
of marketing associate-served
sales and 48.7% of
all traditional broadline
company sales
Commenting on the second
quarter, Richard J.
Schnieders, who became
SYSCO's fifth chairman
and chief executive
officer on January
1, 2003, said, "The
sales acceleration
we experienced during
the first quarter
of fiscal 2003 continued
into the second quarter,
boosting market share
gains. Of particular
note, sales to marketing
associate-served customers,
who are principally
independent foodservice
operators, increased
12.7 percent compared
to last year's second
quarter.
"Real sales growth of
7.6 percent for the
quarter was SYSCO's
best result in the
last eight quarters,"
continued Mr. Schnieders.
"In addition, real
sales increased sequentially
throughout calendar
year 2002, reflecting
the soundness of our
growth strategies."
The second quarter real
sales increase of
7.6 percent is adjusted
for 0.9 percent food
cost deflation and
excludes 6.8 percent
of sales growth from
recently acquired
companies.
Mr. Schnieders concluded
his remarks by emphasizing
the success SYSCO
enjoyed in expense
control, resulting
in a 20 basis point
decline in expenses
as a percent to sales.
"During the second
quarter many of our
important expense
metrics improved,
including pieces per
stop, lines per stop,
pieces per trip and
pieces per mile. Each
contributed to excellent
expense control, as
did the continued
success of the SYSCO
Order Selector (SOS),
a unique, finger-mounted
unit that assists
warehouse associates
in selecting the correct
products for each
customer's order.
The SOS system, which
is being rolled out
at all broadline companies,
is currently used
in 21 of our operations.
The system significantly
increases order accuracy
and productivity,
both of which ultimately
benefit SYSCO and
our customers through
expense reduction
and increased service
levels."
In reviewing the second
quarter, Thomas E.
Lankford, who succeeded
Mr. Schnieders as
SYSCO's president
and chief operating
officer on January
1, 2003, stated that
the quarter was marked
by a number of transactions
designed to position
SYSCO for future growth.
"SYSCO acquired four
unique foodservice
operations during
the second quarter.
These include broadline
distributor Abbott
Food Service; Asian
Foods, a company that
specializes in products
for the Asian restaurant
market niche; Canada-based
Pronamics, Inc., a
quickservice restaurant
chain distribution
specialist; and the
purchase of certain
assets of the Denver
operations of Marriott
Distribution Services,
Inc. Each provided
either the additional
geographic coverage
we desired and/or
also allowed us to
strengthen our offerings
to select niche foodservice
markets."
Mr. Lankford added that
SYSCO purchased land
in Front Royal, Virginia,
and commenced construction
of the company's Northeast
Redistribution Center.
This warehouse, which
is expected to be
operational by the
summer of 2004, will
receive and redistribute
food and food-related
products to 14 SYSCO
operating companies
in the northeast.
SYSCO expects to achieve
transportation and
handling savings and
improve inventory
flow, storage and
handling methods through
the use of this and
future redistribution
warehouses, which
will create a more
efficient supply chain.
"Other events included
the signing of an
agreement to acquire
land for the construction
of a broadline fold-out
in the area just north
of Los Angeles, as
well as finalizing
our activities for
the opening of a specialty
meat company fold-out
in East Plainfield,
New Jersey, this month,"
Mr. Lankford continued.
"Our capital investments
are producing the
expected results,
and combined with
the daily activities
of our 48,000 associates,
have led to our 107th
consecutive quarter
of earnings increases.
We remain confident
that our strategies
will continue to position
us to lead our growing
industry."
SYSCO is the largest
foodservice marketing
and distribution organization
in North America,
generating sales of
$24.7 billion for
calendar year 2002.
The company's 149
distribution locations
in the United States
and Canada provide
food and related products
and services to approximately
415,000 restaurants,
healthcare and educational
facilities, lodging
establishments and
other foodservice
customers.
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, control
or reduce expenses,
increase operating
efficiencies 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 fold-outs and
integration of acquired
companies; the risk
of interruption of
supplies due to lack
of long-term contracts,
severe weather, work
stoppages or otherwise;
the ability of the
redistribution warehouse
to achieve expected
efficiencies; 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
Starbucks Signs
Agreement Giving SYSCO
Exclusive Foodservice
Distribution Rights
HOUSTON, January 21,
2003--SYSCO Corporation
(NYSE:SYY), North
America's largest
foodservice marketer
and distributor, and
Starbucks Coffee Company
(NasdaqNM:SBUX), today
announced an agreement
granting SYSCO exclusive
rights to distribute
Starbucks products
to non-contracted
foodservice customers.
This agreement will
be implemented immediately
by SYSCO through its
64 full-service broadline
distribution locations
across the United
States.
Under terms of the multi-year
agreement, SYSCO will
be a strategic foodservice
distribution partner
with Starbucks, targeting
a variety of potential
customers such as
businesses, colleges
and universities,
hotels, white-tablecloth
restaurants and upscale
casual restaurants.
Starbucks will be
the only premium national
brand coffee actively
supported by SYSCO
and, in turn, Starbucks
will align its current
foodservice sales,
service and support
resources exclusively
with SYSCO.
Richard J. Schnieders,
SYSCO's chairman and
chief executive officer,
said, "The ability
to leverage our sales
and distribution networks
with a high quality
brand provides excellent
growth opportunities
to SYSCO and Starbucks.
Both companies will
benefit from the sales
and market share gains
that we expect to
achieve. Equally important,
our customers will
have the opportunity
to increase traffic
and sales by offering
the unique Starbucks
products to their
clientele."
"Through this agreement
Starbucks can achieve
a broader market presence,
bringing the Starbucks
Experience to a wider
audience," said Jim
Donald, president,
Starbucks North America.
"SYSCO will make ordering
and delivery of our
products for our foodservice
customers much easier
and more efficient.
As we grow and expand
our business in the
foodservice arena,
partnering with a
world-class foodservice
distributor, like
SYSCO, will enable
us both to grow and
meet our goals at
a faster pace."
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 49,000
employees at 149 distribution
locations, 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 more
information about
SYSCO, visit the company's
Internet home page
at www.sysco.com.
Starbucks Coffee Company
is the leading retailer,
roaster and brand
of specialty coffee
in the world, with
more than 6,000 retail
locations in North
America, Latin America,
Europe, the Middle
East and the Pacific
Rim. The Company is
committed to offering
the highest quality
coffee and the Starbucks
Experience while conducting
its business in ways
that produce social,
environmental and
economic benefits
for communities in
which it does business.
In addition to its
retail operations,
the Company produces
and sells bottled
Frappuccino(R) coffee
drinks, Starbucks
DoubleShot(TM) coffee
drink, and a line
of superpremium ice
creams through its
joint venture partnerships.
The Company's other
brands enhance the
Starbucks Experience
through best-of-class
products: Tazo Tea
Company offers a line
of innovative premium
teas, and Hear Music
produces and distributes
a line of exceptional
compact discs.
Forward-Looking Information
Certain statements made
herein are forward-looking
statements under the
Private Securities
Litigation Reform
Act of 1995. They
include statements
regarding expected
benefits of SYSCO's
agreement with Starbucks
including sales and
market share gains.
These statements are
based on management's
current expectations
and estimates; actual
results may differ
materially due to
certain risks and
uncertainties. Risks
and uncertainties
that may affect actual
results include the
risks associated with
the foodservice distribution
industry's relatively
low profit margins
and sensitivity to
general economic conditions,
including the current
economic environment,
competitive price
pressures, availability
of supplies, work
stoppages, severe
weather, 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 29, 2002 as filed
with the Securities
and Exchange Commission.
Return
to headlines
Second Quarter
Earnings Conference
Call Available On
the Internet
HOUSTON, January 13,
2003--SYSCO Corporation
(NYSE:SYY), North
America's largest
foodservice marketer
and distributor, today
announced it will
release its second
quarter fiscal 2003
earnings before the
market opens on Monday,
Jan. 27, 2003.
Members of SYSCO's senior
management will also
host a conference
call that morning
at 10:00 a.m. (EST)
to discuss the company's
results with the investment
community. A live
webcast of the quarterly
conference call will
be available online
at www.sysco.com.
Please log on fifteen
minutes early to register
for the event and
download any necessary
software. A replay
of the call will be
available online at
approximately 12:00
p.m. (EST) and remain
archived until Friday,
Feb. 14, 2003.
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.
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to headlines
