Seneca Foods profit falls 87%
October 29, 2010
by Eric Schroeder
MARION, N.Y. — Net income at Seneca Foods Corp., a processor of canned fruits and vegetables under the Libby’s, Aunt Nellie’s Farm Kitchen, Stokely’s and Seneca brands, fell 87% in the second quarter ended Oct. 2 to $2,811,000, equal to 23c per share on the common stock, from $12,425,000, or $1.02 per share, in the second quarter of fiscal 2010.
Net sales fell 15% to $275,448,000, down from $323,205,000 in the second quarter of fiscal 2010. The company attributed the decline to decreased selling prices and a less favorable sales mix of $19.1 million and sales volume reduction of $28.7 million.
For the six months ended Oct. 2, net income was $8,086,000, or 66c per share, down 66% from $23,511,000, or $1.94 per share, in the same period a year ago. Net sales were $495,390,000, down from $553,733,000.
“The first-half results reflect the continuing inventory overhang in the market from last year’s bumper crops, which has required us to continue aggressive promotional activity,” said Kraig H. Kayser, president and chief executive officer.