Earnings, sales jump for Ralcorp after Post acquisition
August 07, 2009
by Jeff Gelski
ST. LOUIS — Ralcorp Inc. recorded net earnings of $74.8 million, equal to $1.33 per share on the common stock, for the third quarter ended June 30, which compared with $45.8 million, or $1.79 per share, in the previous year’s third quarter. Third-quarter sales jumped to $994 million from $658.6 million with about $264.8 million of the increase coming from Post Foods, acquired by Ralcorp last year, and about $46 million of the increase coming from Harvest Manor Farms, acquired earlier this year. Ralcorp is incurring costs related to integrating Post Foods into Ralcorp’s operations. The expense portion totaled $13.2 million in the third quarter.
Third-quarter cereal sales were $476.1 million, up from $194.4 million last year. Third-quarter sales increased in Snacks, to $219.1 million from $166 million, and in Sauces and Spreads, to $136.7 million from $124.1 million. Third-quarter sales decreased in Frozen Bakery Products, falling to $162.1 million from $174.1 million.
Excluding the effects of the Post Foods and Harvest Manor Farms acquisitions, third-quarter sales volume changes were mixed. Cereals would have increased 4%, and Sauces and Spreads would have increased 1% while declines would have come from Frozen Bakery Products, at 11%, and Snacks, at 3%.
Ralcorp is incurring costs related to integrating Post Foods into the company’s operations. The expense portion totaled $13.2 million in the third quarter.
For the first nine months of the year, Ralcorp recorded net earnings of $210.5 million, or $3.69 diluted e.p.s., which compared to $126.7 million, or $4.81 diluted e.p.s., during the same period last year. Sales for the first nine months were $2,908.7 million, up from $1,950.9 million.