Harris Teeter 2004 Annual Report Download - page 4

DEAR SHAREHOLDERS:
I
t is no secret that the primary businesses that make up the Ruddick
Corporation
— supermarkets and textiles — are highly competitive. Our
commitment to succeed in these industries requires that we constantly
improve ourselves to meet the changing needs of our customers, the
economy and the marketplace. Ruddick Corporation’s attention to
fundamentals combined with the talent and dedication of our associates
makes this process of improvement possible, and has brought your
corporation through a challenging year in a sound financial position.
Fiscal 2004 results benefited from a strong performance at Harris Teeter and an additional
week of operations. Consolidated results for fiscal 2004 (a 53-week year) compared to the
52 weeks of fiscal 2003 were:
* Net sales increased 5.3% to $2.87 billion from $2.72 billion
* Operating profit increased 10.1% to $112 million from $102 million
* Net income increased 8.0% to $64.7 million from $59.9 million
* Earnings per share on a diluted basis increased 7.0% to $1.38 from $1.29
These results have allowed us, in addition to our planned capital expenditures, to pay down
debt, make substantial contributions to our pension plans, and build up our cash reserves.
We have a very strong balance sheet, one of the strongest in the recent history of the
company.
The competitive landscape in retail food is a rapidly changing environment to which Harris
Teeter continues to adapt. Our supermarkets are in the fast growing southeast region of the
country and we see competitors arriving daily.
The continued growth of supercenters, chain drug stores and dollar stores has resulted in
more retail formats vying for customers’ food dollars. At the same time, customers expect
great values and great service regardless of where they shop.
Ruddick Corporation & Subsidiaries Annual Report ’04
PG
1
Letter to Our Shareholders