Shares in US food group Ralcorp Holdings tumbled today (21 June) after the owner of Post cereals said its third-quarter profits would be lower than a year earlier.
Ralcorp shares were down by 5.8% in early trading after the company forecast third-quarter diluted earnings per share of US$1.00 compared to the $1.31 it earned a year ago.
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The company, which announced three acquisitions on a day of significant expansion for the business, including a $1.2bn deal for American Italian Pasta Co., blamed lower returns from promoting its Post cereal brands.
Ralcorp said competitive activity from other US cereal brands had weighed on its private-label cereal business within its Ralston Foods division.
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