DOW JONES NEWSWIRES Sysco Corp.'s (SYY) fiscal fourth-quarter earnings rose 7.1% as an extra week helped the latest period's results and volume trends improved. North America's largest marketer and distributor of foodservice products also counts hospitals, schools and other institutions as customers, but its restaurant business took the brunt during the economic downturn. Some restaurants last year had trouble paying their bills, increasing Sysco's exposure to bad debt, although that has been less of an issue lately. Sysco said its bad-debt provisions in the quarter plunged 53% after more than doubling in the prior-year period. For the quarter ended July 3, Sysco reported a profit of $337.8 million, or 57 cents a share, up from $315.3 million, or 53 cents, a year earlier. Revenue increased 14% to $10.35 billion, compared to a year-earlier decline of 6.6%. Analysts polled by Thomson Reuters most recently forecast earnings of 58 cents on revenue of $9.96 billion. Excluding the extra week plus corporate-owned life insurance impacts in both periods, earnings were flat at 50 cents while revenue increased 5.8%. Gross margin narrowed to 19.2% from 19.4% amid higher costs for dairy, meat and produce. For the new year, the company projected capital spending of $700 million to $750 million, up from $595 million in the past year. Shares closed Friday at $29.98 and were inactive premarket. The stock is up 23% the past year. -By Tess Stynes and Matt Jarzemsky, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com
