Aug. 4--A $9.9 million writedown at thread and textile maker American & Efird helped send Ruddick Corp. earnings down 33 percent in the three months that ended June 28, compared with the same time last year.

The Charlotte-based parent company of grocer Harris Teeter Tuesday reported third-quarter net income of $16.5 million, compared with $24.5 million in 2008. Ruddick's sales during the quarter rose 1.1 percent compared with the year before, to $1.02 billion. Gains at Harris Teeter helped offset losses at American & Efird, which also wrote down the value of U.S. acquisitions in 1995 and 1996 and some long-lived assets. The threadmaker has seen sales drop due to weakness in the clothing and auto industries, the company said.

Harris Teeter, meanwhile, has faced challenges as a higher-end grocer in a value-centered climate. New stores helped Harris Teeter's sales rise 4.1 percent in the quarter, to $964.2 million. But sales at stores open more than a year, an important measure of retail health, were down slightly: 1.42 percent. The company attributed that to changes in consumer buying habits due to the economy, cannibalization created by opening stores near existing Harris Teeter stores in key markets, a higher percentage of sales from lower-priced store brand products and declines in categories such as floral and health and beauty.

In reporting the results, Ruddick also announced that is exploring other alternatives to a previously announced new distribution center in Fredericksburg, Va. If the center does move forward, it's likely to be on a delayed construction timetable, the company said, with completion arriving later than the original date of 2012. Harris Teeter has already reduced or delayed the number of new store openings planned for this year and beyond due to the economy.

"We continue to experience changes in our customers' spending habits and shopping demands during this time of economic uncertainty," chairman, president and CEO Thomas Dickson said in a news release. "Our customers continue to look for value and we remain focused on enhancing the overall value we deliver while maintaining or increasing our customer base."

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