Del Monte income rises 24% in quarter

by Staff
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SAN FRANCISCO — Earnings at Del Monte Foods Co. rose 24% in the second quarter, boosted by strong volume and pricing-driven top-line growth.

For the quarter ended Nov. 1, the company had income of $62.6 million, equal to 31c per share on the common stock, which compared with income of $50.4 million, or 14c per share, during the same quarter of the previous year. Sales for the quarter were $958.9 million, up 6% from $901 million during the same quarter of the previous year.

“These results are a reflection of the momentum generated through the successful execution of our accelerated growth plan,” said Richard G. Wolford, chairman and chief executive officer. “This strategy is targeted to increase marketing investment behind our core brands and to offset costs through pricing actions and productivity initiatives. In the second quarter, we successfully executed against these strategic objectives, including increasing our marketing investment by over 30% and generating $20 million in productivity savings.”

For the six months ended Nov. 1 the company had income of $121.2 million, or 61c per share, up significantly from $40.3 million, or 10c per share, during the same period of the previous year. Sales for the six months were $1,772.6 million, up 9% from $1,627.2 million during the same period of the previous year.

The company also is increasing its outlook for fiscal 2010 diluted earnings per share from continuing operations to 93c to 97c, up from a previous guidance of 88c to 92c.

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