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Supervalu Cuts Annual Profit Forecast on Slowdown (Update3)

By Josh Fineman

Jan. 8 (Bloomberg) -- Supervalu Inc., the second-largest U.S. supermarket chain, lowered its annual profit and sales forecasts as consumers trimmed spending because of higher gasoline and food costs. The shares fell the most in two years.

The announcement came as Supervalu today reported third- quarter net income climbed 25 percent to $141 million, or 66 cents a share, on fewer costs. The chain cut its profit forecast for the year through February to $2.71 to $2.77 a share. The average analyst estimate is $2.77.