for Q1 were up 12 percent

Kroger Co., the nation's largest supermarket chain, said on Tuesday that its first-quarter earnings rose 12 percent, helped by improved performance in Southern California after the end of a strike and lockout.

The Cincinnati-based company, which owns Smith's Marketplace stores in Utah, beat Wall Street estimates and raised its earnings outlook for the year.

Kroger said it earned $294.3 million, or 40 cents per share, in the quarter ended May 21, compared with $262.8 million, or 34 cents per share, a year ago. Sales increased 6 percent to $17.9 billion, compared with $16.9 billion in 2004.

Analysts surveyed by Thomson Financial had expected earnings of 35 cents a share for the fiscal first quarter of 2005.

- The Associated Press

AMC to merge with Loews

The nation's second-largest theater chain AMC Entertainment Inc., announced plans Tuesday to acquire Loews Cineplex Entertainment Corp. in a move that may help the new company compete as Hollywood struggles to lure more people to the nation's megaplexes.

The combined company, to be called AMC Entertainment Inc., will own, manage or have interests in about 450 theaters in 30 states and 13 countries. It will be headquartered in Kansas City, Mo., and led by current AMC Chairman, CEO and President Peter Brown.

The deal also provides for the combination of AMC's and Loews' holding companies, now privately held.

Loews, which once had more screens in Utah than any other, now owns only one multiplex in the state: the Layton Hills 9 in Layton. AMC has no theaters in Utah.

- The Associated Press

Hotel occupancy still climbs

May was the seventh consecutive month in which hotels statewide had higher occupancy levels than in the same month a year earlier.

Sixty percent of the rooms available across the state last month were filled each night, up from 56.9 percent in May of 2004. The increase was more pronounced in Salt Lake County, where the occupancy rate climbed to 62.7 percent last month from 56.6 percent a year earlier, according to figures released Monday by the Denver-based Rocky Mountain Lodging Report.

Hoteliers also continued to get more money nightly. The average room rate statewide was $71.29 per night last month, up from $68.35 a year earlier, while Salt Lake County's rate rose $3 to $74.87.

October of 2004 was the last time Utah hotels had more empty rooms than in the previous year.

West Valley City hotels filled the most rooms last month (72 percent), Park City the fewest (33 percent). Elsewhere, occupancy rates were 66 percent in St. George, 64 in Davis County, 62 percent in 60 percent in Utah County, 53 percent in Logan, 49 percent in Cedar City and 58 percent in all other parts of Utah.

- Mike Gorrell