Harris Teeter 2001 Annual Report Download - page 5

dear shareholders
strengths
The fiscal year ended September 30, 2001 was very challenging for Ruddick Corporation.
Reported earnings were disappointing, but that does not tell the entire story. We believe that your
company took appropriate and important actions to create a solid foundation for future growth and
to persevere through the uncertain times that we currently face, particularly in the textile business.
We enter 2002 from a position of strength as evidenced by the strong balance sheet fundamentals and
the restructuring actions taken in 2001. We are secure in the knowledge that Ruddick Corporation will
continue to identify areas where we can improve our competitive position. We will build upon the pro-
grams we have put in place in the past several years to strengthen our position in both of our industries.
Throughout fiscal 2001 the world economy has weakened and the terrorist attacks of September 11
are likely to prolong any economic downturn. Your company will meet these challenges because we
made significant steps toward improving our operations, in both our Harris Teeter supermarket and
our American & Efird (“A&E”) industrial thread subsidiaries during 2001.
We believe it is one of our strengths that Ruddick’s two operating companies are in such widely dis-
parate sectors. This allows us to diversify our risks and withstand a downturn in one area or another.
The softening economy, together with the steep downturn in U.S. consumer spending for apparel, hit
the textile industry particularly hard. We believe A&E is prepared to weather the current downturn and
will be well positioned to prosper when industry conditions improve.
Ruddick Corporation & Subsidiaries Letter to Shareholders Page 1
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