Ralcorp Holdings said today that it had seen a fall in second quarter diluted earnings per share to US$0.48 compared to $0.59 a year ago, despite a 13% increase in net sales for the quarter on the back of business acquisitions.
The company said total segment profit contribution was down 9% as a result of lower margins due to the rapid escalation of the costs of raw materials, freight, and energy.
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Earnings before income taxes and equity earnings were $11.8m (compared to $20.7m last year). Net earnings were $13.9m, 22% lower than last year.
The second quarter sales growth was $52.1m, of which $12.3m is attributable to Medallion, acquired 22 June, 2005, $19.7m came from Western Waffles, acquired 15 November, 2005, and $5.9m came from Parco, acquired 7 February, 2006.
The remaining growth was due to both selling price increases and product mix, as overall volume was relatively flat.
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