Seneca Foods Q3 Net Earnings Increase
Seneca Foods has reported net earnings of $18.6m or $1.52 per diluted share for the third quarter ended December 26, 2009 compared to $13.8m or $1.13 per diluted share for the same quarter previous year.
Sales decreased 3.5% to $447m compared to the previous year quarter. The decrease in sales is attributable to sales volume reduction of $19.0m partially offset by increased selling prices/improved sales mix of $2.7m.
Net earnings for the nine months ended December 26, 2009 increased to $42.1m or $3.44 per diluted share, compared to $16.1m or $1.32 per diluted share in the prior year period. Net sales for the period increased from last year by $5.3m or 0.5%, to $1,000.8m.
The increase in sales is attributable to increased selling prices/improved sales mix of $48.3m partially offset by a sales volume reduction of $43.0m. Pre-tax results for the nine month period included a $0.2m gain on the sale of unused equipment and a $0.9m plant restructuring charge primarily related to a Voluntary Workforce Reduction Program at our plant in Modesto, California.
Kraig Kayser, president and CEO of Seneca Foods, said: We continue to be pleased by the strong earnings performance in the third quarter. While our sales were lower, predominately due to reduced sales to the US Department of Agriculture (USDA), we continue to witness strength in private label and we believe consumers continue to find strong appeal in the value and nutritional benefits of canned vegetables and fruits.
“The decline in our USDA business was by choice as we were unwilling to sacrifice margins to win some of this business this year. Excluding sales to the USDA, our top-line would have been up by $12.2 million for the third quarter despite heavy promotional activity by the leading competitive brands.”
Seneca Foods is the processors of canned fruits and vegetables with manufacturing facilities located throughout the US. Its products are sold under the Libby's, Aunt Nellie's Farm Kitchen, Stokely's, Read, and Seneca labels and through the private label and industrial markets.
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