US food company Monterey Pasta has said it expects lower third-quarter sales and earnings compared to the year-ago period, as its largest customer reduced its orders.
The company said it now expects third-quarter results to range from break-even to a loss of 2 cents a share, compared to net income of US$5.5m, or 38 cents a share, in the year-ago period. Excluding a $4.3m tax benefit, profit was $1.2m, or 8 cents a share, a year earlier.
Monterey Pasta forecast third-quarter sales down 8-10% from $16.6m a year earlier, but said it still expects fourth-quarter sales to rise 7-10% due to strong sales in recent weeks, reported Dow Jones News.
Lower-than-expected sales of its lasagne products, and weaker-than-expected sales of other new items, also contributed to lower third-quarter sales, the company said.