US: Sara Lee books Q3 loss in run-up to spin-off
- Q3 loss of $2m
- Excluding one-off items, net income fell 33.4%
- "On track" for 30 June spin off
US food and beverage group Sara Lee has reported a quarterly loss on the back of costs linked to the spin off of its coffee and tea business, which is scheduled for next month.
The company yesterday (3 May) booked a US$2m net loss for its third quarter, which ran until 31 March.
Operating income fell 65.9% to $66m thanks to restructuring costs and lower profits from the company's four divisions.
Net sales climbed 2% to $1.9bn as sales in each of the four units increased. However, price increases boosted sales and Sara Lee reported falling volumes from its coffee and tea and speciality meats units. Volumes from the company's North American retail meat business were flat year-on-year.
Excluding one-off items, which were largely due to the planned spin-off, adjusted net income was down 33.4% at $123m. Adjusted operating income fell 4.7% to $195m. Net sales excluding the items increased 3% to $1.86bn.
Executive chairman Jan Bennink said Sara Lee was "on track" to spin off the company's coffee and tea business - to be called D.E. Master Blenders 1753 - on 30 June.
Click here for the full release.
Former Sara Lee executive Marleen Vaesen will become chief executive of Belgium-based produce group PinguinLutosa....
Hillshire Brands has added a Lemon Pound Cake to its Sara Lee brand, as well as making the label's signature Butter Pound Cake more moist....
- ConAgra Foods: what could happen next? - analysis
- Why Mars rice plan not just crop-ticking exercise
- Greencore's food-to-go focus paying dividends
- How Danone aims to meet its 2020 objectives
- What could be benefit of US approval of GM salmon?
- Hovis plans cuts amid anxiety over UK bread demand
- Aryzta regional CEO steps down
- "Serious" suitors lined up for Chicken of The Sea
- Unilever sets 2030 carbon positive goal
- Fonterra, Bellamy's strike baby nutritionals partn