(Reuters) - Supervalu Inc
The company's shares rose 6 percent in premarket trading after the company reported net income of $40 million, or 15 cents per share, in the quarter ended September 7. It lost $111 million, or 52 cents per share, in the same quarter last year.
Excluding items, the company earned 13 cents per share.
Analysts on average had forecast a profit of 11 cents per share on revenue of $3.88 billion, according to Thomson Reuters
Overall sales rose 0.2 percent to $3.95 billion, even after it sold nearly 900 supermarket to reduce debt and cut costs.
Supervalu has been losing customers to larger rivals such as Kroger
Selling and administrative expenses fell 14 percent to $465 million in the second quarter, largely due to operating a much smaller company.
Its interest bill fell by a third, thanks to lower interest rates and paying off debt after the $3.3 billion asset sale earlier in the year.
Supervalu's operating margin was 2.8 percent, compared with minus 0.3 percent a year earlier.
Supervalu shares closed at $8.40 on the New York Stock Exchange on Wednesday.
(Reporting by Chris Peters and Devika Krishna Kumar; Editing by Maju Samuel and Rodney Joyce)