Aramark Q2 Profit Climbs 28

PHILADELPHIA -- Aramark Holdings Inc.'s adjusted net income increased 28% in its first quarter, ended April 3. The Philadelphia-based contract foodservice giant attributed the improvement to higher sales and productivity gains.

Aramark's net income adjusted to exclude one-time gains was $91 million, or 37¢ a share, compared with $71 million, or 29¢ per share, in the prior second quarter.

Total revenue rose 2.6%, to $3.6 billion, from $3.5 billion in the same quarter a year ago. The company said sales growth in the quarter was driven by "a balance of new sales, solid retention rates and base business expansion."

Second-quarter sales in Aramark's facilities services business in North America, its largest segment, which provides foodservice, building and grounds maintenance among other services, grew 6% in the second quarter to $2.5 billion. However, sales in its international facilities services business dropped 8% to $700 million.

Aramark said that sales in its uniform and career apparel segment grew 4% to $400 million.