November 17, 2010 / 1:31 PM / in 8 years

CORRECTED - UPDATE 1-Loblaw profit rises, sees margins under pressure

(Corrects third paragraph to say billion not million)

* Q3 EPS C$0.77 vs C$0.69 a year earlier

* Revenue up 1 percent

* Same-store sales down 0.4 pct

TORONTO, Nov 17 (Reuters) - Loblaw Cos (L.TO), Canada’s biggest grocery store chain, reported a 13 percent rise in third-quarter profit on Wednesday but said that costs related to systems and infrastructure programs will pressure profit margins.

Net earnings rose to C$213 million ($208.8 million), or 77 Canadian cents a share, from C$189 million, or 69 Canadian cents, a year earlier.

Sales for the company, which operates more than 1,000 stores under banners such as Loblaws and No Frills, rose 1 percent to C$9.59 billion.

Same-store sales, or sales at stores open for at least a year, dropped 0.4 percent.

Analysts on average had expected earnings of 79 Canadian cents a share, on revenue of C$9.63 billion, according to Thomson Reuters I/B/E/S.

Shares of the Brampton, Ontario-based company closed at C$42.15 on Tuesday on the Toronto Stock Exchange. The stock has gained 24 percent so far this year.

$1=$1.02 Canadian Reporting by Bhaswati Mukhopadhyay

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