Metro Settles Its Strike

Article Excerpt

METRO INC. $36.77 (Toronto symbol MRU.A; SI Rating: Extra Risk) (514-643-1055;; Shares outstanding: 113.9 million; Market cap: $4.2 billion) has settled the two-week strike by the 315 employees at its Montreal dry grocery goods warehouse. The strike affected around 25% of its store network. The new contract will bring stability to the dry grocery distribution center for the next nine years, to 2015. Metro still must negotiate new agreements with two separate unions representing 10,000 employees in Ontario at 80 A&P, Ultra Food & Drug and Dominion stores and a distribution center. However, talks are now underway. Metro reported higher sales and earnings in the three months ended September 30, 2006. Sales rose 37%, to $2.7 billion from $2 billion. The gain was largely due to the $1.7 billion acquisition of A&P Canada in August, 2005. Excluding integration and rationalization costs, Metro’s earnings per share rose 27.1% in the latest quarter, to $0.61 from $0.48. Metro is still a buy. buy…

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