US food distributor Performance Food has reported a drop in third-quarter earnings, as sales were hit by the sale of its fresh-cut segment and the impact of Hurricane Katrina.
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The company reported net earnings of US$11.4m, or 27 cents per share, for the quarter to 1 October, compared to $17.7m, or 37 cents per share, for the year-ago period.
The company sold its fresh-cut segment to Chiquita Brands International in June. Net earnings from continuing operations were $11.9m, compared to $10.8m a year earlier. Net sales from continuing operations rose 7.3% to $1.4bn.
“We achieved solid internal sales and net earnings growth during the third quarter, despite the impact of Hurricane Katrina,” said chairman and CEO Bob Sledd.
“We expect to finish the year on a strong note with solid results in the fourth quarter. We anticipate the residual impact of Hurricanes Katrina and Wilma to continue to affect the fourth quarter earnings somewhat,” Sledd added.
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By GlobalDataPerformance Food markets and distributes national and private label food and food-related products to restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions.
