US: TreeHouse Foods Q3 profits slide
- Net profit slides to $21.6m
- Operating profit falls 21.5%
- Net sales up 1.9%
Lower volume in the non-dairy creamer, dressings, jams and powder drinks categories more than offset the volume gains
US own-label firm TreeHouse Foods has booked a decline in third-quarter profit as a result of higher input costs and drop in volumes.
Earnings in the three months to the end of September totalled US$21.6m compared to $30.4m last year. Operating profit slid 21.5% to $41.3m, the company reported today (6 November).
Sales in the period amounted to $538.1m versus $528.1m last year, an increase of 1.9% due to additional sales from the acquisition of Naturally Fresh and increased pricing to offset higher input and operational costs.
The company said that while it had volume increases in categories such as pasta sauces and hot cereals, lower volume in the non-dairy creamer, dressings, jams and powder drinks categories more than offset the volume gains.
TreeHouse Foods, Inc. Reports Third Quarter 2012 Results
- Net sales increased 1.9% due to pricing and the acquisition of Naturally Fresh
- Adjusted earnings per share of $0.70, driven by weaker than expected net sales
- Adjusted EBITDA as a percentage of net sales improved sequentially by 80 basis points to 13.9%
- Company tightens full year adjusted earnings per share guidance to $2.75 to $2.85
OAK BROOK, Ill., Nov. 6, 2012 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS) today reported third quarter earnings of $0.58 per fully diluted share compared to $0.82 per fully diluted share reported for the third quarter of last year. The Company reported adjusted earnings per share, excluding unusual items as described below, of $0.70 compared to $0.85 in the prior year.
The Company's 2012 third quarter results included several unusual items that affected the year-over-year quarterly comparison. The first item is a $0.12 per share expense of restructuring charges, including the previously announced restructuring of the Company's soup operations and the closure of the Seaforth, Ontario, Canada facility. The remaining items are comprised of a $0.01 per share expense associated with the acquisition of substantially all of the assets of Naturally Fresh, Inc. and a $0.01 per share gain on the mark-to-market adjustment of the Company's commodity agreements.
Original source: Treehouse Foods
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