CHARLOTTE, N.C. — Increased costs and an increase in promotional spending led to a 9% decline in income for Lance, Inc.
For the third quarter, net income was $6,809,000, equal to 22c per share on the common stock, compared with $7,495,000, or 24c per share, during the same quarter of the previous year.
Sales for the quarter were $225,587,000, up 14% from $198,052,000 during the same quarter of 2007.
"Our third-quarter earnings were disappointing and well below our expectations," said David V. Singer, president and chief executive officer. "The earnings shortfall in the quarter was due to a temporary increase in our cost of potatoes and peanuts, higher-than-anticipated energy costs and a temporary increase in promotional spending. Our potato and peanut costs are now back to normal, energy costs are declining, and we have implemented sufficient pricing to offset our higher input costs. Therefore, we expect a significant rebound in our operating profit margin beginning in the fourth quarter, consistent with our previous goals and expectations."
Net income for the nine months ended Sept. 27 was $10,163,000, or 33c per share, down 55% from $22,757,000, or 74c per share, during the same period of the previous year. Sales for the nine months were $637,169,000, up 10% from $577,515,000 during the same period of the previous year.
As a result of the increase in expenses, the company has lowered its full-year earnings per share range to 53c to 57c.