Charges weigh on Albertson’s earnings

Albertson’s Inc., the nation’s second-largest supermarket chain, said Tuesday its profit in the fourth quarter declined 17 percent, weighed down by charges.

For the quarter ended Feb. 2, net income fell to $162 million, or 43 cents per share, from $194 million, or 52 cents per share, a year earlier. Earnings in the latest quarter included 9 cents per share in charges, compared with 2 cents per share in the year-ago period.

Quarterly sales fell 9 percent to $10.23 billion, as sales in stores open at least a year dipped 0.3 percent.

Excluding unusual items and discontinued operations, income grew to $200 million, or 54 cents per share, from $194 million, or 52 cents per share.

“Shares of Krispy Kreme Doughnuts Inc. jumped 21 percent Tuesday after the troubled maker of the famous treats hired a food industry veteran from Kraft as its new chief executive.

Daryl Brewster, 49, who will also hold the title of president and join Krispy Kreme’s board of directors, previously headed up Kraft Inc.’s $6 billion North American snacks and cereals business. He started his new job at 7:30 a.m. with a warm glazed doughnut and a cup of coffee.

Shares of Krispy Kreme soared $1.32, or 21 percent, to close at $7.71 on the New York Stock Exchange. The stock, which traded at more than three times its average volume, had dropped as low as $3.91 in the past year.

“Kenya Airways has agreed to buy six Boeing 787 passenger jets, replacing its older 767s with the new long-range, fuel-efficient planes.

The deal, announced Monday, is worth about $878 million at list prices, though airlines typically negotiate discounts.

The growing carrier, which recently added several routes, said it will take delivery of its first 787 in 2010 and four the following year. Now under development, the 787 is scheduled to enter commercial service in 2008.

“Volkswagen AG’s chief executive on Tuesday reported healthy growth in car deliveries for the first two months of 2006, even as he stressed the need for cost-cutting efforts.

CEO Bernd Pischetsrieder also skirted direct comment on persistent speculation about his own future, but said that “I would like to lead our company to success together with my colleagues.”

Pischetsrieder said preliminary estimates showed that the automaker delivered 790,000 vehicles in January and February, a 15 percent year-on-year gain.