Seneca Foods has booked an increase in full-year earnings on the back of higher sales and one-time gains.

The US company said today (23 May) net earnings jumped 267.9%, climbing to US$41.4m in the year to end-March. Profits were boosted by one-time gains associated with property valuations and the estimated value of assets acquired through the group's Sunnyside purchase.

Sales were up 1.5% in the 12 months, rising to US$1.28bn. The company attributed the increase to higher selling prices and an improved product mix, which more than offset a slight decline in sales volumes.

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Seneca Foods Reports Earnings of $41.4 Million or $3.57 per Diluted Share for Fiscal Year 2013

MARION, N.Y., May 23, 2013 /PRNewswire/ -- Seneca Foods Corporation (NASDAQ: SENEA, SENEB) reported that net earnings for the fiscal year ended March 31, 2013, increased 267.9% to $41.4 million, or $3.57 per diluted share, compared to $11.3 million, or $0.92 per diluted share, in the fiscal year ended March 31, 2012. Net sales for the fiscal year ended March 31, 2013, increased from the fiscal year ended March 31, 2012 by 1.5%, to $1,276.3 million. The increase is attributable to increased selling prices and improved sales mix of $34.3 million partially offset by a sales volume reduction of $15.8 million.

Net sales for the fourth quarter ended March 31, 2013, increased from the fourth quarter ended March 31, 2012, by 1.7%, to $274.9 million. The increase is attributable to increased selling prices and more favorable sales mix of $2.3 million and additional sales volume of $2.2 million. Net earnings for the fiscal fourth quarter of 2013 was $3.9 million, or $0.35 per diluted share, compared to a net loss of $2.2 million, or $0.18 per diluted share, in the fiscal fourth quarter of 2012.

Excluding a non-cash after-tax LIFO credit of $2.0 million, net earnings per diluted share were $0.17 during the quarter ended March 31, 2013 versus $0.75 during the quarter ended March 31, 2012, which included a non-cash LIFO charge of $11.3 million. Excluding a non-cash after-tax LIFO credit of $2.7 million, net earnings per diluted share were $3.33 during the year ended March 31, 2013, versus $3.44 per diluted share during the year ended March 31, 2012, which included a non-cash LIFO charge of $30.7 million.

During 2013, there was a gain of $2.0 million as a result of the estimated fair market value of the net assets acquired exceeding the purchase price of Sunnyside, a gain of $0.3 million from the sale of certain property located in Cambria, Wisconsin and a loss of $0.3 from the disposal of certain other fixed assets which are also included in other operating (loss) income. During 2012, the Company recorded a gain of $0.7 million from the sale of property located in LeSueur, Minnesota and a gain of $0.1 million from the sale of other property which are included in other operating (loss) income.

During the third quarter of fiscal 2013, the Company implemented a product rationalization program and recorded provisions for related equipment costs, lease impairment costs and certain inventory costs which resulted in a $3.5 million restructuring charge for fiscal 2013.

 

 

Original source: Seneca Foods