US: High commodity costs weigh on Michael Foods
Michael Foods has been acquired by Post Holdings.
In a set of preliminary data for the quarter to 29 March, Michael Foods predicted EBITDA would reach US$48m, compared to US$67.2m for the same period last year.
Net sales are set to hit $474m, lower than the $484.3m Michael Foods booked last year.
President and CEO Jim Dwyer said: "Our Q1 2014 results were unfavourably impacted by record high dairy costs and high soybean meal commodity costs. Also, weather-related disruptions to our manufacturing facilities, customer distribution centres and transportation-related costs as a whole were a significant headwind for the quarter. We have announced and executed various pricing actions across our businesses to reflect the current cost environment."
Earlier today (17 April) Post announced it had struck a deal to buy Michael Foods in for US$2.45bn deal. There had been speculation in recent days that Tyson Foods was also interested in the business.
First-quarter results for Michael Foods will be announced in May. Post said it expects the takeover to go through by the end of June.
Tyson Foods, Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offeri...
Tyson Foods and Hormel Foods have had processing plants and cold storage facilities barred from exporting pork to China over the use of a feed additive that promotes lean muscle growth....
Project Synopsis: MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity unde...
Synopsis Canadean's "Tyson Foods, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile co...
Michael Foods Group, Inc. - Strategic SWOT Analysis Review provides a comprehensive insight into the company’s history, corporate strategy, business structure and operations. The report contains a det...
- M&A Watch: Raisio should sell to private equity
- Analysis: Market bets on higher Chiquita offer
- Briefing: Expansion agenda of Japan's food majors
- Spotlight: What could be impact of Russia's ban?
- Briefing: Tokyo plans to double food exports
- Campbell Soup's Plum division to pull out of UK
- Kerry cools claim spreads move could hit jobs
- Pork Farms buys Kerry Group's pastry plants
- Profits up at chocolate group Lindt
- Japan's Sanyo takes stake in Olam's food biz