US canned food supplier Seneca Foods has reported a fall in nine-month profits due to higher LIFO charges.
The company yesterday (26 January) reported a 31.3% drop in net earnings to US$13.4m for the nine months to 31 December.
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It posted earnings per diluted share of $1.10, compared to $1.60 a year earlier.
Seneca, which sells canned fruit and vegetables under brands including Libby’s and Seneca Farms, booked a LIFO charge of $19.5m. Excluding those costs, Seneca’s net earnings per diluted share were $2.70, compared to $1.23 in the first nine months of the company’s financial year, when it enjoyed a LIFO credit of $4.4m.
The company reported a 5.2% increase in net sales for the first nine months of this financial year to $990.6m.
For the third quarter, Seneca’s net earnings jumped 61.7% to $18.5m, or $1.52 per diluted share. Excluding a LIFO charge of $7m, earnings per diluted share were $2.09, compared to $0.83 a year earlier, when the company had a LIFO credit of $1.4m.
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By GlobalDataNet sales inched up 0.4% to $447.9m, Seneca said.
“The improved earnings performance in the quarter reflects the fact that our inventories were much more balanced than prior year during the holiday season,” president and CEO Kraig Kayser said. “The swing to higher LIFO charges is a reflection of significant increases in the cost of produce, steel, and fuel which are three primary cost inputs to our inventories.”
