Del Monte Foods third-quarter net income drops 10%
March 01, 2007
by FoodBusinessNews.net Staff
SAN FRANCISCO — Del Monte Foods Co. suffered a 10% drop in net income during the third quarter, but saw sales climb 15% as the company continues to implement its strategic initiatives.
Net income in the third quarter ended Jan. 28 was $46,500,000, equal to 23c per share on the common stock, down from $51,900,000, or 26c per share, in the third quarter of 2006. Net sales increased to $907,200,000 from $789,600,000 during the same quarter in 2006.
For the consumer products segment, operating income was $52,400,000, down 12% from $59,600,000 in the same quarter a year ago. Del Monte said the decrease was driven primarily by StarKist Seafood due to higher fish costs and lower volume. These factors partially were offset by positive net pricing actions in fruit and tomatoes. Net sales in the segment were $551,000,000, a 2% drop from $562,300,000 during the same quarter of the previous year.
"This quarter's solid financial results were driven by the ongoing successful execution against our strategic initiatives as we continue to strengthen the foundation of Del Monte," said Richard G. Wolford, chairman and chief executive officer of Del Monte Foods. "The strength of our recently acquired pet businesses, growth from new products and the heightened impact of pricing actions we took earlier this year drove both the top and bottom line. These drivers, coupled with continued aggressive cost-reduction programs, helped the company mitigate ongoing inflationary cost pressures and are enhancing the long-term earnings performance potential of our company."