Bestfoods Pre-Acquisition Financial Information.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 3, 2000 The acquisition of Bestfoods was completed by Unilever on October 4, 2000 and, as a wholly-owned subsidiary of the Unilever Group, Bestfoods results will be consolidated from that date. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SEC reporting requirements the Bestfoods second quarter earnings statement issued on July 12, 2000 and the 10/QA filed on August 10, 2000 are the last required filings Bestfoods. However, in order to assist in understanding the development of the Bestfoods business since June 30, and up to September 30, 2000, unaudited third quarter financial data for the Bestfoods operations has been prepared. The financial data has been prepared on a consistent basis with previous quarters and has been prepared in accordance with U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . U.S. GAAP differs from U.K. and Dutch GAAP and if the financial data presented were to be prepared in accordance with U.K. and Dutch GAAP there would be differences in the amounts reported. The financial data presented herein for the third quarter should be considered indicative only and excludes merger related integration costs of $21.4m and includes financial data in respect of the Bestfoods Baking Company in the U.S. and the Lesieur business in France which Unilever has announced its intention to sell. Review of Third Quarter Income Data Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before merger related expenses reached 71 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the third quarter, 10.9% above the 64 cents in the prior year. This increase in earnings arose despite the adverse impact amounting to 7 cents per share for the third quarter from exchange rates and higher financing costs. The Euro, Pound Sterling and Brazilian Real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. all weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. versus the dollar. Financing costs for the
quarter increased because higher levels of debt were needed as a result
of the Arisco acquisition in February.Overall net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased by 6% compared to prior year. This included 4.1% internal volume growth. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the quarter increased by 14.2% compared to prior year. Operating income also includes $8m net gain arising from the sale of a potato ingredients business in Germany. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Net sales increased 13.5% for the third quarter, reflecting 5.2% internal growth in volumes plus 8.1% volume growth from acquisitions. Pricing and currencies (Canada and the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. ) had a small positive impact. Volume growth for retail products was 5.0% for the quarter. Gains were seen in vegetable oils <onlyinclude> This list of vegetable oils includes all vegetable oils that are extracted from plants by placing the relevant part of the plant under pressure to extract the oil. , pourable dressings, peanut butter, bouillon Bouillon, town (1991 pop. 5,468), Luxembourg prov., SE Belgium, in the Ardennes on the Semois River, near the French border. It is a small manufacturing and tourist center. and soups. Mayonnaise declined 4%, reflecting an overall decline in the category during the quarter and slight loss of market share due to competitive activities. For the year to date, mayonnaise volumes are up by 2% compared to prior year. Foodservice volumes grew 60% for the quarter, reflecting solid growth in existing products (+11.3%) and higher volumes from the Case Swayne acquisition, which took place in early October 1999. Strong volume growth was seen in mayonnaise, pourable dressings, bouillons and vegetable oils. The line of chilled pourable dressings launched earlier in the year continues to show very encouraging results. Operating income for the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. division increased 21.8% over prior year for the quarter, coming mostly from higher volumes (including the Case Swayne acquisition) and improved margins. Marketing expenditure was essentially flat year over year. The operating income to net sales margin improved from 16.6% in 1999's third quarter to 17.9% this year. Europe Net sales decreased 6.1% for the quarter, but excluding the negative currency impact, sales revenues grew 3.5% over prior year. Unit volume growth was 3.4%, of which 2.6% came from internal growth and 0.8% came from acquisitions. Particularly strong volume performances were seen in Benelux, Nordic, and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Operating income grew 10.4% in the third quarter compared to prior year. The increase excluding currency impact would have been 21.9%. The strong performance was due primarily to margin improvement, as the operating income to net sales margin increased from 16.4% to 19.2%. Some of the margin improvement came from reduced marketing. There was also a net gain of $8 million, or 5% of the operating income for the quarter, arising from the sale of a potato ingredients business in Germany. Excluding this one time gain, operating income for Europe grew 4.4% in reported dollars. Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. Latin America continued to show signs of improvement compared to last year when difficulties were encountered particularly in Brazil. Overall sales for the quarter grew 33.7%, which included 40.1% volume growth (5.4% excluding the Arisco and Molinos acquisitions) offset by currency declines (-4.5%) and some price declines (-1.9%). Excluding the acquisitions, sales were essentially flat, as gains in Mexico were mostly offset by the effect of price declines in Argentina and Brazil. Operating income for the quarter grew 24.8%, which resulted mostly from volume gains, 10.4% internal and 17.1% from acquisitions, offset by exchange declines (-4.8%). Margin levels declined slightly year over year for the quarter. Argentina and Mexico performed well with Brazil reflecting the benefit of the Arisco acquisition. Asia Net sales for the third quarter grew by 5.3%, but this came from an increase in volumes of 14.1% (9.9% excluding acquisitions) offset by some price declines (-5.6%) and a negative currency impact (-3.2%). Volumes were strong in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Philippines, Thailand and China, although the last was off a small base. Price promotions in Hong Kong, Philippines and Thailand drove the volumes but also caused erosion in prices at the net sales level. Currency declines took place in Thailand and the Philippines. Knorr retail bouillon volume was up 8% in the area compared to prior year and soup volumes were up 18%. Additional soup varieties were successfully launched in China. Dressings and foodservice also showed strong double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" increases in volume. Operating income grew 21.6% for the quarter, resulting from volume gains and margin improvements. Operating income to net sales margins were 17.3% compared to 14.9% in prior year, despite the price declines mentioned above. Cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. and product mix were favourable. Baking Business Net sales for Baking increased 4.6% over last year's third quarter, 3.5% from volume growth (all internal) and 1.1% from price improvements. Volume growth was strong in all bread brands, led by the continuing unit growth in Arnold and very strong Thomas' bagel sales. Of note is the growth in Entenmann's base cake sales, +1.6%. Thomas' fresh waffles were introduced in the Northeast with very positive consumer response. Operating income grew 19.4% for the quarter, mostly coming from the volume improvement. Favourable price/mix was offset by higher operating costs operating costs npl → gastos mpl operacionales for the direct store delivery system. There was improvement in the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , which grew from 8.1% in 1999 to 9.3% this year. This quarter marks the 12th consecutive quarter with double digit earnings growth, comparable quarter over quarter. UNILEVER BACKGROUND: Unilever is one of the world's largest consumer products companies with sales of $52 billion. It produces and markets a wide range of foods, home and personal care products. Unilever operates in 88 countries around the globe and employs 300,000 people. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Unilever sales were $10 billion in 1999. It employs 38,000 people and has 104 offices and manufacturing sites in 27 states. Two of Unilever's 12 global Business Groups are headquartered in the United States. Some of their major products are: Foods - North America: Lipton teas, soups, recipe products and side dishes side dish n. A dish served as an accompaniment to the main course. Noun 1. side dish - a dish that is served with, but is subordinate to, a main course entremets, side order ; Wish-Bone salad dressings Wish-Bone is a popular American brand of salad dressing. The original dressing was based on a recipe served at the Wish-Bone restaurant in Kansas City, Missouri, founded by ex-soldier Phillip Sollomi in the late 1940s. ; Lawry's seasonings and specialty sauces; Imperial, Promise, Country Crock crock - [American scatologism "crock of shit"] 1. An awkward feature or programming technique that ought to be made cleaner. For example, using small integers to represent error codes without the program interpreting them to the user (as in, for example, Unix "make(1)", which , "I Can't Believe It's Not Butter This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. !", Brummel & Brown spreads and sprays; Ragu pasta and pizza sauces; Five Brothers premium pasta sauces; Knorr soups, sauces and bouillons; Hellmann's mayonnaise and dressings; Skippy peanut butter; Mazola oils; Entenmann's, Thomas' and Arnold baked goods; Klondike, Good-Humor, Popsicle, Breyers and Ben & Jerry's ice cream products; Gorton's frozen seafood seafood Edible aquatic animals excluding mammals, but including both freshwater and ocean creatures. Seafood includes bony and cartilaginous fishes, crustaceans, mollusks, edible jellyfish, sea turtles, frogs, sea urchins, and sea cucumbers. products and Slim-Fast nutritional and health snack products. Unilever Home and Personal Care - North America: Wisk, "all" and Surf laundry detergents; Snuggle and Final Touch fabric softeners Fabric softener (also called Fabric Conditioner) is used to prevent static cling and make fabric softer. Popular brand names include Lenor, Lenor/Downy, Snuggle, and Comfort. ; Sunlight dish detergents; Lever 2000, Caress, Dove and Shield bar soaps; Pond's and Vaseline skin care products; Q-tips cotton swabs "Q-Tip" redirects here. For the rapper, see Q-Tip (rapper). For the band, see Q-Tips (band). Cotton swabs (British English: cotton buds) are used in first aid, cosmetics application, and a variety of other uses. and cotton balls; Mentadent, Aim, Close-up and Pepsodent oral care products; Degree, Suave suave adj. suav·er, suav·est Smoothly agreeable and courteous. [French, agreeable, from Old French, from Latin su and Brut Brut, Brute (both: br  t), or Brutus (br deodorant/toiletry products; Finesse, Salon
Selectives Salon Selectives is a line of hair care products, ranging from shampoos and conditioners to mousses, sprays, gels, and oils. Salon Selectives was introduced as a level-based brand line to consumers by Helene Curtis, which it was acquired by Unilever in 1986, and has grown since; , Suave, ThermaSilk, Aqua Net and Rave hair care products; and
Calvin Klein Noun 1. Calvin Klein - United States fashion designer noted for understated fashions (born in 1942)Calvin Richard Klein, Klein , Nautica, Vera Wang Vera Wang (Chinese: 王薇薇; Pinyin: Wáng Wēiwei; born June 27, 1949) is an American fashion designer based in New York. and Elizabeth Arden Elizabeth Arden (December 31, 1878 - October 19, 1966) was a Canadian businesswoman who built a cosmetics empire in the United States. Arden was born Florence Nightingale Graham in Woodbridge, Ontario, where she lived until she was twenty-four years old. cosmetic and fragrance products. In addition, DiverseyLever, a global professional cleaning business, operates in North America, supplying professional cleaning materials and services to institutional and industrial markets.
Bestfoods and Subsidiaries
Consolidated Income Data (unaudited)
(All figures are in millions except per share amounts)
Three months ended Nine months ended
Sep-30 Sep-30
------------------------ ------------------------
% %
2000 1999 Incr/Decr 2000 1999 Incr/Decr
---- ---- --------- ---- ---- ---------
Net Sales $2,188 2,064 6.0 6,615 6,414 3.1
====== ====== ====== ====== ====== ======
Operating income 381 334 14.2 1,055 952 10.9
====== ====== ====== ====== ====== ======
Net income 205 184 11.5 558 504 10.8
====== ====== ====== ====== ====== ======
Average common
shares outstanding:
Diluted 286.2 287.8 285.1 288.6
Earnings (excluding
merger related
expenses) per
common share:
Diluted 0.71 0.64 1.95 1.74
Analysis of change in EPS 2000 versus 1999
------------------------------------------
Diluted Diluted
($ per share) Three months Nine months
ended September ended September
--------------- ---------------
$ $
Higher volumes 0.10 0.25
Margin improvement 0.05 0.14
Currency impact -0.04 -0.15
Financing cost -0.03 -0.05
Shares outstanding - 0.02
Tax rate -0.02 -
Minority interest 0.01 -
----------- -----------
Total change in EPS 0.07 0.21
EPS 1999 0.64 1.74
----------- -----------
EPS 2000 0.71 1.95
=========== ===========
This is unaudited consolidated income data prepared by management. The
operating income amounts exclude integration costs of $21.4 million in
the third quarter of 2000 and $66.4 million in the nine month period.
Bestfoods and Subsidiaries
Consolidated Income Data (unaudited)
Divisional results
($ millions)
Three months ended
Sep-30 Due to: ($)
------------------------ ------------------------
%
2000 1999 Incr/Decr Volume Price FX
---- ---- --------- ------ ----- --
Net Sales $ $
---------
North America 511 450 13.5 60 0 1
Europe 778 828 -6.1 28 1 -79
Latin America 354 265 33.7 106 -5 -12
Asia 101 96 5.3 14 -5 -4
Baking 444 425 4.6 15 4 -
------ ------ ------ ------ ------ ------
Total Operations 2,188 2,064 6.0 223 -5 -94
====== ====== ====== ====== ====== ======
Operating Income $ $ Volume Margin FX
---------------- ------ ------ --
North America 91 75 21.8 11 5 -
Europe 150 136 10.4 5 25 -16
Latin America 94 75 24.8 21 1 -3
Asia 17 14 21.6 2 2 -1
Baking 41 35 19.4 6 - -
Corporate Expenses -12 -1 - - -11 -
------ ------ ------ ------ ------ ------
Total Operating
Income 381 334 14.2 45 22 -20
====== ====== ====== ====== ====== ======
Nine months ended
Sep-30 Due to: ($)
------------------------ ------------------------
%
2000 1999 Incr/Decr Volume Price FX
---- ---- --------- ------ ----- --
Net Sales $ $
---------
North America 1,468 1,334 10.1 147 -15 2
Europe 2,572 2,726 -5.6 93 12 -259
Latin America 938 798 17.4 196 10 -66
Asia 311 281 10.6 52 -17 -5
Baking 1,326 1,275 4.0 42 9 -
------ ------ ------ ------ ------ ------
Total Operations 6,615 6,414 3.1 530 -1 -328
====== ====== ====== ====== ====== ======
Operating Income $ $ Volume Margin FX
---------------- ------ ------ --
North America 245 219 11.7 33 -7 0
Europe 482 452 6.8 16 64 -50
Latin America 217 185 17.4 37 11 -16
Asia 48 39 24.3 4 6 -1
Baking 102 82 24.6 18 2 -
Corporate Expenses -39 -25 56.7 - -14 -
------ ------ ------ ------ ------ ------
Total Operating
Income 1,055 952 10.9 108 62 -67
====== ====== ====== ====== ====== ======
This is unaudited consolidated income data prepared by management. The
operating income amounts exclude integration costs of $21.4 million in
the third quarter of 2000 and $66.4 million in the nine month period.
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