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CURTICE BURNS REPORTS 1ST QUARTER F/94 SALES AND EARNINGS

 ROCHESTER, N.Y., Oct. 26 /PRNewswire/ -- Curtice Burns Foods (AMEX: CBI), a food processor, today reported first quarter fiscal 1994 net earnings of $1,184,000 or $.14 per share. This includes a one-time charge against earnings of $480,000, or $.06 per share, necessary to adjust deferred taxes to the higher corporate income tax rates legislated by Congress as required by the Financial Accounting Standards Board. Excluding this one-time charge, net earnings were $1,664,000, or $.20 per share, 24 percent higher than the same period last year when they were $1,337,000 or $.16 per share. Net sales in the first quarter were $210,090,000, down three percent from last year's $215,739,000.
 "The restructuring charge that we took at the end of fiscal 1993 has had a positive impact on first quarter earnings," said Curtice Burns Foods President and CEO J. William Petty. "We are pleased with the progress we've made on the restructuring to date, including an October 13 announcement on a definitive agreement to sell National Oats to Ralston Purina. This was approved by the boards of both Curtice Burns and Pro-Fac Cooperative (which holds title to certain of the business assets) and is subject to the expiration of the applicable waiting period under the Hart-Scott-Rodino Act. On October 19, we announced the signing of a letter of intent to sell our Hiland Potato Chip Division to Weaver Potato Chip Company. This has been approved by the Curtice Burns board, and we are currently reviewing with Pro-Fac the conditions under which they would agree to the sale of the Hiland assets to which Pro-Fac holds title.
 "In the first quarter," Petty continued, "we began to see the positive impact of improved pricing on our commodity vegetables, resulting from the poor Midwestern crops and lowered national supply levels. Our Northeastern vegetables are mostly at full pack this year. The $5,649,000 decline in net sales was due primarily to the poor sales volume performance of the Snack Group and the divestiture of the Lucca frozen specialties business during the past year.
 "As of this writing, there is nothing new to report on the issue of the potential sale of Agway's interest in Curtice Burns. At the direction of the board, management is actively exploring three strategic options -- sale of the equity in the company to a third party, sale of the equity in the company to Pro-Fac Cooperative, and refinancing the company to buy out Pro-Fac Cooperative. I am impressed by the ability of the Curtice Burns Team to remain focused on moving the business ahead in spite of this change of control issue, as demonstrated by these results of the first quarter of Fiscal '94!"
 Curtice Burns Foods processes and markets 24 product lines of regional branded, private label and foodservice products through nine autonomously managed divisions and 44 plants and warehouses located throughout the United States and Western Canada.
 CURTICE BURNS FOODS
 CONSOLIDATED STATEMENT OF INCOME
 (unaudited)
 ($000 except share data)
 Quarter Ended
 9/25/93 9/25/92
 Net Sales $210,090 $215,739
 Income Before Taxes $ 3,123 $ 2,207
 Provision for Taxes on Income $ 1,939(A) $ 870
 Net Income $ 1,184 $ 1,337
 Net Income Per Share $ .14 $ .16
 Average Number of Shares
 Outstanding 8,635,291 8,583,798
 (A) -- Includes a one-time charge of $480 or $.06 per share to adjust deferred taxes to the higher rates legislated by Congress as required under Statement of Financial Accounting Standards No. 109.
 -0- 10/26/93
 /CONTACT: Bea Slizewski of Curtice Burns Foods, 716-383-1850/
 (CBI)


CO: Curtice Burns Foods ST: New York IN: FOD SU: ERN

AR -- CL004 -- 6718 10/26/93 08:34 EDT
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Publication:PR Newswire
Date:Oct 26, 1993
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