Tootsie Roll net falls 29% in Q2
August 18, 2008
by Eric Schroeder
CHICAGO — Higher ingredient costs weighed on second-quarter results at Tootsie Roll Industries, Inc., as net income in the period ended June 28 fell 29% to $7,245,000, equal to 13c per share on the common stock. This compared with earnings of $10,226,000, or 18c per share, in the second quarter of fiscal 2007.
Net sales in the second quarter were $101,590,000, down narrowly from $101,901,000 in the same period a year ago.
"Second-quarter 2008 results were adversely affected by higher input costs relating to major ingredients, packaging materials, freight and delivery, and products manufactured in Canada due to less favorable foreign exchange rates," said Melvin J. Gordon, chairman.
For the six months ended June 28, net income was $13,699,000, or 25c per share, down from $20,037,000, or 35c per share. Sales totaled $191,932,000, down 1.5% from $194,815,000.