US frozen vegetable producer Birds Eye Foods has reported lower earnings for fiscal 2005, hit by higher costs and competition.

The company reported net income of US$18.6m for the fiscal year ended 25 June 2005, compared to $31.9m in the previous year. Income from continuing operations was $20.2m in fiscal 2005, compared to $27.5m in fiscal 2004. Increased costs and competitive activity negatively impacted operating results.

Birds Eye said net sales grew approximately 2% to US$858.7m for fiscal 2005, lead by the company's acquisition of the California and Washington Company (C&W) on 23 September 2004. In addition, the benefits of the company's revitalisation efforts for its Birds Eye Viola! product category also contributed to the net sales improvement. Revenue growth was, however, partially offset by volume declines in certain product lines as a result of pricing actions taken by the company to mitigate significantly higher product costs.