TreeHouse Foods income flat in quarter
May 09, 2007
by FoodBusinessNews.net Staff
WESTCHESTER, ILL. — TreeHouse Foods Inc. had net income of $7,414,000, equal to 24c per share on the common stock, during the quarter ended March 31, nearly the same compared with a net income of $7,399,000, also 24c per share, during the same quarter of the previous year.
Net sales were $258,984,000, or a 50% increase compared with $172,724,000 during the same quarter of the previous year.
The results were affected by high increases in commodity and other input costs.
"We entered the year knowing that the significant run-up in input costs would put pressure on our margins until the full effects of our pricing actions were realized," said Sam K. Reed, chairman and chief executive officer. "Although the results are down from last year, we did achieve our internal targets and expect to see margin improvements beginning next quarter."
Net sales in the pickle segment were $72,440,000, down 2% from the previous year at $74,141,000. Net sales in the powder segment were up 7% to $71,814,000 compared with $66,838,000 during the same quarter of 2006. Net sales for the soup and infant feeding segment were $85,784,000.
"In the first quarter we seamlessly completed the operational integration of the soup and infant feeding business into our Bay Valley Foods organization and improved our operation expense leverage," Mr. Reed said. "In addition, we entered two transactions that provide us with a meaningful entry into the fast growing Hispanic food segment. A third transaction will provide greater food service capabilities in the pickle segment without committing to further production capacity."