Tootsie Roll net climbs on higher sales
May 10, 2010
by Eric Schroeder
CHICAGO — Higher sales that benefited from marketing programs helped drive a 9% increase in earnings at Tootsie Roll Industries, Inc. Net income in the first quarter ended April 3 totaled $9,085,000, equal to 16c per share on the common stock, up from $8,320,000, or 14c per share, in the same period a year ago. Net sales rose 10% to $103,244,000 from $94,054,000.
“First-quarter 2010 net sales benefited from effective marketing programs as well as the timing of certain customer sales in the first quarter 2010 and fourth quarter 2009 reporting periods,” said Melvin J. Gordon, chairman. “The increase in first quarter 2010 net earnings reflects the benefits of higher sales and favorable foreign currency exchange and translation. However, first quarter 2010 net earnings were adversely affected by higher ingredient costs, primarily sugar, increases in distribution costs, including higher fuel costs relating to freight and delivery, and a higher effective income tax rate.”