TreeHouse Foods, the food company spun off from Dean Foods in June has announced a fall in profits for the second quarter ended 30 June 2005, with most of the reduction due to the costs of the spin off.
Net income for the second quarter was $1.3m compared to $12.6m in the same period a year ago. For the six months, net income was $12.3m compared to $25.5m.
Net sales for the second quarter were almost unchanged at $180m, while sales for the six months rise to $351m, compared to $346m a year ago.
TreeHouse commenced operating as a separate, standalone company on June 27, 2005. The costs of the spin-off transaction are included in second quarter and year to date results. Spin-off transaction costs included in income from operations in the second quarter were $9.5m and for the year-to-date period were $9.6m.
“I am very pleased with TreeHouse’s position as we begin our course as a public company,” said Sam K. Reed, chairman and chief executive officer. “Completing the spin-off and establishing a public company was a tremendous accomplishment. Results for the second quarter show that the businesses are operating on a sound basis. Results for our powdered non-dairy creamer segment were particularly impressive as this business continues to grow. The pickle segment remains challenged.”