US food manufacturer TreeHouse Foods saw net income fall 11.39% due to a series of one off costs.
The company announced today (5 November) that earnings reached US$24.9m compared to $28.1m in the same quarter last year.
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The company said that for the third quarter ended 30 September, diluted EPS was down to US$0.68 from $0.85 in the same quarter of last year. However on an adjusted basis, diluted EPS improved 28% to $0.69 compared to $0.54 last year.
The company incurred continuing costs associated with the Portland Oregon pickle plant closure, acquisition costs associated with the purchase of S.T. Specialty Food, as well as the impacts of an interest rate swap agreement, currency fluctuations and a gain in 2009 due to an insurance reimbursement for the replacement of assets at the company’s New Hampton, Iowa facility.
Over the quarter, net sales grew 22.5% to $464.2m, while adjusted EBITDA was up 49.7% to $72.1m due to higher sales resulting from the acquisition of Sturm Foods in the first quarter of 2010.
Treehouse Foods chairman and CEO Sam Reed said: “Overall it was an excellent quarter, as we delivered solid unit growth in both our legacy businesses as well as our recent acquisitions. We are also very pleased with our ongoing cost control efforts, as improvements in margins and operating costs led to our strong cash flow in the quarter.”
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By GlobalDataClick here for Treehouse Foods’ full earnings statement.
