MULTIFOODS REPORTS FIRST QUARTER RESULTS
MULTIFOODS REPORTS FIRST QUARTER RESULTS MINNEAPOLIS, June 24 /PRNewswire/ -- International Multifoods Corp.
(NYSE: IMC) today reported net earnings of $6 million, or 31 cents per share, for its first quarter ended May 31, 1992.
This year's earnings were even with a year ago, excluding a one-time charge the prior year related to an accounting change. Last year's first quarter included results from the company's agribusinesses, which were divested in the fourth quarter. Net sales of $547.6 million were down slightly from the previous year; net sales from continuing businesses increased 10 percent. "We are pleased with our first quarter performance, which was achieved despite the soft economy and the exclusion of earnings from our divested agribusinesses," said Tony Luiso, chairman, president and chief executive officer. "While the absence of ag earnings will make year-to- year comparisons difficult in the near-term, we will see long-term benefits from our stronger strategic focus on our food businesses and on meeting our customers' needs." Net sales in U.S. Foodservice were up 9 percent to $420.2 million. Despite softness in certain product lines related to the economy, segment earnings increased 11 percent to $7.9 million on lower general and administrative costs. Canadian Foods reported net sales of $62.5 million, a 15 percent increase principally resulting from acquisitions. Segment earnings of $1.4 million were down 58 percent compared with a strong first quarter last year. Contributing to the lower earnings were competitive pricing pressures coupled with higher wheat costs. The company expects earnings from Canadian Foods to improve in the second half of the year. Venezuelan Foods posted a net sales increase of 16 percent to $64.9 million on volume gains in consumer foods and agricultural operations. Segment earnings were up 10 percent to $5.3 million due to the volume improvements. Multifoods' first quarter results also benefited from reduced interest expense and a lower effective tax rate. Minneapolis-based Multifoods, with fiscal 1992 net sales of $2.3 billion, is a diversified food company with major operations in the United States, Canada and Venezuela. INTERNATIONAL MULTIFOODS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (in millions, except EPS) 1st Quarter FY 1993 FY 1992 Net Sales $547.6 $553.4 Cost of Sales (483.0) (476.1) Selling, General and Administrative (50.0) (59.9) Interest, net (3.9) (5.3) Earnings (Losses) from Unconsolidated Affiliates 0.1 (0.1) Corporate (0.6) (1.2) Earnings Before Income Taxes and Cumulative Effect of Accounting Change 10.2 10.8 Income Taxes (4.2) (4.8) Earnings Before Cumulative Effect of Accounting Change 6.0 6.0 Cumulative Effect of Accounting Change, net of taxes -- (17.1)(1) Net Earnings $6.0 $(11.1) Earnings Per Share of Common Stock: Before Cumulative Effect of Accounting Change $0.31 $0.31 Cumulative Effect of Accounting Change -- (0.88)(1) Net Earnings Per Share of Common Stock $0.31 $(0.57) Average Shares of Common Stock Outstanding 19.3 19.5 INTERNATIONAL MULTIFOODS CORPORATION EARNINGS DIGEST (Unaudited) (in millions) FY 1993 - 1st Quarter Net Operating Unusual Sales Costs Items Total U.S. Foodservice $420.2 $(412.3) -- $7.9 Canadian Foods 62.5 (61.1) -- 1.4 Venezuelan Foods 64.9 (59.6) -- 5.3 Total $547.6 $(533.0) -- $14.6 Segment Earnings $14.6 Interest, net (3.9) Earnings from Unconsolidated Affiliates 0.1 Corporate Unallocated (0.6) Earnings Before Income Taxes $10.2 FY 1992 - 1st Quarter Net Operating Unusual Sales Costs Items Total U.S. Foodservice $387.3 $(380.2) -- $7.1 Canadian Foods 54.2 (50.9) -- 3.3 Venezuelan Foods 56.1 (51.3) -- 4.8 Divested Businesses 55.8 (53.6) -- 2.2 Total $553.4 $(536.0) -- $17.4 Segment Earnings $17.4 Interest, net (5.3) Losses from Unconsolidated Affiliates (0.1) Corporate Unallocated (1.2) Earnings Before Income Taxes and Cumulative Effect of Accounting Change $10.8 (1) Accounting change related to the implementation of Statement of Financial Accounting Standards No. 106 "Employers' Accounting for Post- retirement Benefits Other than Pensions." -0- 6/24/92 /CONTACT: Linda K. Berg (media), 612-340-3755, or Yolanda M. Scharton (investors) 612-340-3621, both of Multifoods/ (IMC) CO: International Multifoods Corp. ST: Minnesota IN: FOD SU: ERN
AL -- MN008 -- 3414 06/24/92 15:49 EDT
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|Date:||Jun 24, 1992|
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