Tootsie Roll net falls 22% in fiscal 2007
February 25, 2008
by Eric Schroeder
CHICAGO — Lower sales and higher input costs took their toll on fiscal 2007 results at Tootsie Roll Industries, Inc., as net income in the full-year ended Dec. 31 fell 22% to $51,625,000, equal to 94c per share on the common stock. This compared with earnings of $65,919,000, or $1.18 per share, in fiscal 2006.
Net sales in the year were $492,742,000, down 1% from $495,990,000 in the same period a year ago.
In the fourth quarter ended Dec. 31, net earnings fell 31% to $8,156,000, or 15c per share, down from $11,730,000, or 21c per share. Sales in the most recent quarter totaled $115,010,000, up 4% from the same period a year ago.
"The 4% increase in fourth-quarter 2007 reported sales reflects successful marketing programs as well as the timing of shipments in the third and fourth quarters 2007 compared to the prior year’s corresponding periods," said Melvin J. Gordon, chairman. "Fourth-quarter 2007 results were adversely affected by higher input costs relating to major ingredients, packaging materials, freight and distribution, and products manufactured in Canada due to less favorable foreign exchange rates."
Mr. Gordon said Tootsie Roll has take actions and implemented programs, including selected price increases as well as cost reduction programs, with the goal of recovering some of the higher input costs.