View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
May 25, 2012updated 06 Apr 2021 5:21pm

US: Baker Flowers Foods cuts FY earnings forecast

US baker Flowers Foods has cut its forecast for full-year earnings after a bond issue pushed up the company's interest charges.

By Dean Best

US baker Flowers Foods has cut its forecast for full-year earnings after a bond issue pushed up the company’s interest charges.

The company said yesterday (24 May) it expects its adjusted earnings per share in 2012 to increase by 3.5% to 8% on last year’s $0.96. In February, Flowers set a forecast for growth of 7% to 12%. However, Flowers said the new forecast did not include any “future acquisitions”.

Last month, the company issued $400m of notes to pay long-term debt and set aside funds for future deals.

Flowers’ revised guidance also contained an increase in capital expenditure. It now expects to spend $75-85m, including the recently-announced expansion of a bakery in Pennsylvania. Its previous forecast was $65-75m.

The group, which manufactures brands including Tastykake and Nature’s Own, also reported a drop in first-quarter profits. Input costs, including ingredients and packaging, offset a rise in sales.

Net income fell 8% to $37.9m. EBIT decreased 3.7% to $59.2m. However, sales were up 12% at $898.2m thanks to last year’s acquisition of Tasty Baking Co. Nevertheless, Flowers managed to increase volumes by 1.7%.

“While input costs presented headwinds in the first quarter, we were relatively pleased with our results,” chairman and CEO George Deese said.

Click here for the full statement.

Related Companies

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU