UPDATE: Sysco Reports In-Line Q2 Profit

reported in-line earnings for the fiscal second quarter. The Houston, Texas-based company posted a quarterly profit of $158 million, or $0.27 per share, compared to $211 million, or $0.36 per share, in the year-ago period. Excluding certain items, the company earned $0.41 per share. Its revenue rose 7.6% to $12.09 billion. However, analysts were expecting earnings of $0.41 per share on revenue of $11.95 billion. Gross profit rose 6.1% to $2.1 billion, while gross margin shrank 23 basis points to 17.25% in the quarter. Operating income dropped 10.3% to $315 million, while adjusted operating income climbed 3.1% to $396 million in the period. For the first half of fiscal 2015, cash flow from operations declined $6 million from the year-ago period to $452 million. "Our second quarter financial results were generally in-line with our expectations, as we made consistent progress on our business transformation initiatives and did a good job of remaining focused on the needs of our customers. As a result, we generated solid case volume growth of nearly 4% and managed acute inflationary pressures effectively," said Bill DeLaney, Sysco's president and chief executive officer. Sysco announced its plans to sell US Foods facilities to Performance Food Group related to its pending merger with US Foods.. Sysco shares fell 1.83% to close at $39.17 on Friday.