US frozen-food firm Overhill Farms has posted a fall in annual profits after sales fell amid a "sluggish" US economy.

The private-label and co-manufacturer yesterday (9 December) booked net income of US$7.6m for the year to 26 September - down from $8.3m a year earlier. Net revenues stood at $194.5m, against $209.9m a year before.

Chairman, president and CEO James Rudis said Overhill had "performed well" in a "difficult economic climate" for the business and its customers.

"We maintained our margins, significantly reduced our debt, strengthened our balance sheet, and most important, we attracted major new customers whose business should contribute significantly to revenue in fiscal 2011 and beyond," Rudis said.

Click here for the full earnings statement from Overhill.