USA: Lance sees Q1 loss on weak demand

US snack maker Lance has lowered its full-year earnings forecast and said it would discontinue certain snack products due to weak demand. The company said it now expects an US$8.4m pre-tax charge in the first quarter related to the decision to halt distribution of its Poppers line of mini sandwich crackers and cookies. Lance said that together with $1.1m in severance costs, charges would likely total 20 cents a share for the quarter, reported Dow Jones News Service.

April 14, 2003

US snack maker Lance has lowered its full-year earnings forecast and said it would discontinue certain snack products due to weak demand.

The company said it now expects an US$8.4m pre-tax charge in the first quarter related to the decision to halt distribution of its Poppers line of mini sandwich crackers and cookies. Lance said that together with $1.1m in severance costs, charges would likely total 20 cents a share for the quarter, reported Dow Jones News Service.

Lance announced in late February that it would cut around 300 jobs, equivalent to 6% of its workforce, as the company attempted to cut costs amid weak sales.

The company has now forecast a loss of 10 cents a share for the first quarter on a 3% decline in revenue. In the first quarter of last year, Lance earned 19 cents a share.

The company has also cut its full-year earnings forecast to between 15 and 25 cents a share, compared with a 30 January prediction of between 65 and 70 cents a share.