Private-label frozen foods maker Overhill Farms has posted a drop in half-yearly net income, hurt by a reduction in volume in the second quarter and “softness” in the airline industry.
For the six months ended 29 March, the US company reported net income of US$4.3m compared to $4.7m in the year-earlier period.
Revenues were also down, dropping to $106.9m, down 13.3% from the first six months of fiscal 2008.
James Rudis, chairman and CEO of Overhill Farms, said the results reflect a “difficult economy” and “do not represent the near-term outlook for the company”.
“After fairly sluggish January and February 2009 sales, we saw substantial upturns in our volumes and revenues that began in March 2009 and have since continued at satisfactory levels,” Rudis said on Friday (8 May).
“Based on orders we have received in the last two months, as well as our expectations for new business, we believe our volumes and revenues will normalise over the balance of the fiscal year.”
The company posted a drop in operating income to $8.4m or 7.9% of net revenues, compared to $10.1m for the year-earlier period.
For the second quarter, net revenues dropped to $51.6m from $66.4bn in the previous year. Net income fell to $1.8bn from $3.2m in the same period of 2008.
