Monterey Gourmet sustains $22.5 million loss in '08

by Eric Schroeder
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SALINAS, CALIF. — Monterey Gourmet Foods sustained a loss of $22,549,000 in the fiscal year ended Dec. 31, 2008. This compared with net income of $1,682,000, equal to 10c per share on the common stock, in fiscal 2007. During the most recent year, the company had impairment charges and write downs of $20.5 million.

Revenue for the year was $97,188,000, down 3% from $100,527,000 during fiscal 2007.

For the fourth quarter of fiscal 2008, Monterey Gourmet suffered a loss of $20,321,000, which compared with income of $641,000 in the same period a year ago. Net sales were $24,466,000, down from $26,825,000.

Despite results that failed to meet company expectations, Eric C. Eddings, president and chief executive officer of Monterey Gourmet, said the company’s pasta sales under the Monterey Pasta Co. brand continue to show strength. The brand posted a 19% gain in sales for the year and 15% gain for the fourth quarter. In addition, he said the company is tightening its focus on its core competencies in natural foods and fresh pastas while exiting non-core businesses.

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