Sysco Says US Foods Purchase Will Close in 2015

Sysco Corp. said it turned a profit in its fiscal fourth quarter, but said its purchase of rival US Foods won't close this year. The FTC is still reviewing the $3.5 billion US Foods deal.

Mnet 139391 Sysco Deal Lead

NEW YORK (AP) — Sysco Corp. (SYY) said Monday it turned a profit in its fiscal fourth quarter, but said its purchase of rival US Foods won't close this year.

Sysco said the Federal Trade Commission is still reviewing the $3.5 billion US Foods deal. It agreed to buy the company in December and originally expected to complete the deal during the third quarter of this year. Later Sysco said the deal might close during the fourth quarter.

The Houston company said it earned $278.8 million, or 47 cents per share, in the three months that ended Sept. 27. Excluding one-time merger and acquisition expenses and other non-recurring costs, Sysco said its net income totaled 52 cents per share. Its revenue grew to $12.45 billion.

Analysts expected net income of 50 cents per share and $12.36 billion in revenue, according to Zacks Investment Research.

Shares of Sysco fell 82 cents, or 2.1 percent, to $37.72 in afternoon trading.

Sysco shares have risen almost 7 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed 9 percent. The stock has climbed 18 percent in the last 12 months.

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