Cincinnati based Kroger Co., the largest U. S. grocery store chain, reported in its quarterly results that the company posted a decrease of 27% in its net income for the fourth quarter of the fiscal ended January 30, 2009. The reduced income was mainly attributable to the lesser profit margins because of the product deflation and the ongoing price war in the retail industry.

For the fourth quarter, Kroger, which has 2500 grocery stores in U. S., posted a profit of $255.4 million or 39 cents per share. The profit was reported decreased by 27% as comparing to the profit of $349.2 million or 54 cents per share posted in the same period last year. The total sales in the fourth quarter were reported of $18.6 billion, increasing by 7.2% while in the same period last year total sales were reported $17.3 billion.

Both the profit and the sales topped the expectations of the market analysts as they estimated a profit of 34 cents per share and sales of $17.7 billion for the quarter.

Kroger, which has banners such as Ralphs, Fred Meyer, Food 4 Less, Fry's, King Soopers, Smith's, Dillons, QFC and City Market, also provided the result for the full year 2009.

In 2009, the company posted a net income of $70 million or 11 cents per share from $1.25 billion or $1.89 per share reported in FY 2008. The reduced yearly income was there because the company had to pay a charge of $1.05 billion to write down in the third quarter on the value of its Ralphs division.