US food processor Seneca Foods has posted a drop in net earnings for its 2011 financial year as it was hit by decreased selling prices, a less favourable sales mix and lower volumes.
The company said yesterday (26 May) that net profit fell some 63.5% for the year ended 31 March to US$17.7m, on the back of a 6.7% fall in net sales to US$1.19bn.
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During the fourth quarter, the company reported a net loss of $1.9m, against a $6.3m net profit in the same quarter of the previous year. Sales were down 9.4% to $253m.
“The lower sales in the fourth quarter came from a combination of lower selling prices and a later Easter, which delayed holiday sales into April. The loss in the quarter was due to the continuing impact on margins of the inventory overhang in the market as the company promoted heavily to move excess product, said president and CEO Kraig Kayser.
“While we are making progress in getting our inventories in line with historic norms, it will take some time to get margins back to improved levels, especially in our fruit business, where the oversupply situation has been particularly dramatic.”
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