Hurricane Ike hurt Kroger's profits in the third quarter

CINCINNATI (AP) — Hurricane Ike battered Kroger Co.'s third-quarter profits, and the grocery chain offered a cautious forecast Tuesday amid the churning U.S. economic storm.

The nation's largest traditional grocer, which owns Smith's stores in Utah, said profits fell 6 percent in the quarter, mainly because of far-reaching damage from Hurricane Ike, even as its sales rose 9 percent. But Kroger expects lower holiday spending to hurt fourth-quarter results, and it projects slower same-store sales growth for next year.

The Cincinnati-based company said it earned $237.7 million, or 36 cents per share, in the quarter, down from $253.8 million, or 37 cents per share, a year earlier.

The company said results were hurt by an after-tax charge of $15.9 million, or 3 cents per share, related to its $25 million insurance deductible for Ike.