US frozen food maker Overhill Farms has recorded a drop in net income for the first nine months of the year as consumers pulled back on spending.
For the period ended 27 June, the company earned US$6.3m compared to net income of $6.9m a year earlier.
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Revenues amounted to $150.1m, a 7% drop on the first nine months of fiscal 2009. Operating income slid to $11.3m, or 7.5% of net revenues, compared to $13.2m in the prior year.
James Rudis, chairman, president and CEO of Overhill Farms, said: “While we remain profitable under challenging conditions, our sales during the third quarter, particularly in June 2010, were significantly affected by several factors. Foremost among these was the impact of the difficult economic climate, with consumers remaining cautious in their spending, even on grocery items.”
Rudis added: “Based on our expectations that the economy will not improve significantly in the near term, we continue to focus intensively on closing new business transactions, from new and existing customers.”
In the third quarter, Overhill reported net revenues of $43.4m and net income of $930,000, compared to revenues of $52.5m and net income of $2.6m in 2009.
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By GlobalDataOperating income dropped to $1.8m from $4.7m in the prior year.
