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May 5, 2020, 7:08 a.m. EDT

Aramark swings to loss as pandemic weighs

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By Adriano Marchese

Aramark on Tuesday reported a net loss in its fiscal second quarter and said its cost-reduction measures set up in the period would reduce operating income and revenue in the near term.

For the three months ended March 27, the Philadelphia-based food, facilities management and uniforms provider had a loss of $202.3 million, or 80 cents a share, compared with a profit of $29.4 million, or 12 cents a share, for the same period last year.

Excluding items, Aramark reported an adjusted profit of 26 cents a share for the quarter, compared with 45 cents a share last year and analysts' forecasts of 25 cents, based on FactSet.

Sales in the period fell to $3.73 billion from $4 billion.

The company estimates a $325 million impact on business operations related to the Covid-19 pandemic.

Looking ahead, the company said it has withdrawn its previous outlook for fiscal 2020 but added that it expects that its cost-reduction strategies will result in a near-term operating income decline of 20% of any corresponding revenue decline.

Write to Adriano Marchese at adriano.marchese@wsj.com

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