Safeway 2004 Annual Report Download - page 6

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Outlook
This is an exciting time to be at Safeway, as we fundamentally reinvent our business and the
way we go to market. We continue to make excellent progress in establishing and communi-
cating clear, compelling points of difference between our offerings and those of our competitors.
At the same time, through an innovative new advertising campaign, we will be connecting
with consumers – current customers and potential new ones – in ways that we believe will
position Safeway as a uniquely responsive, more complete store. As noted on the following
pages, life is changing, and so are we.
In closing, once again I’d like to acknowledge our employees for their tireless efforts.
As we strive to establish a sustained competitive advantage in a challenging business
environment, I’m reminded that “a company is only as good as its employees allow it to be.”
We’re fortunate to have some of the best trained, most knowledgeable workers in the
supermarket industry. We think they’re the friendliest, most helpful employees in the business
as well, a sentiment echoed by many of our customers. We have a winning team whose
players thrive on challenges and take pride in outperforming the competition while enhancing
customer satisfaction.
Based on our recent, positive sales trends, we are encouraged that our strategy is working
and are convinced that Safeway is headed in the right direction for future growth. We are
determined to deliver shareholder value.
Steven A. Burd
Chairman, President and Chief Executive Officer
March 15, 2005
Amount Per Diluted
Share
Net income, as reported $560.2 $1.25
Dominick’s store closures 28.5 0.06
Estimated strike impact 254.0 0.57
Health and welfare contribution 19.1 0.04
Accrual for rent holidays 6.5 0.01
Adjusted income $868.3 $1.93
2004
Amount Per Diluted
Share
Net loss, as reported $(169.8) $(0.38)
Estimated strike impact 102.9 0.23
Dominick’s impairment charges:
Goodwill 275.9 0.62
Assets 190.9 0.43
Randall’s impairment charges 447.7 1.00
Miscellaneous investments
write-off 6.5 0.01
Inventory loss accrual 43.5 0.10
Restructuring and other expenses 15.6 0.04
Adjusted income $ 913.2 $ 2.05
1 Reconciliation of GAAP Net Income
(Loss) to Adjusted Income (Unaudited)
(Dollars in millions, except per-share amounts)
2003
4 SAFEWAY INC. 2004 ANNUAL REPORT