MULTIFOODS REPORTS HIGHER SECOND QUARTER RESULTS
MULTIFOODS REPORTS HIGHER SECOND QUARTER RESULTS MINNEAPOLIS, Sept. 24 /PRNewswire/ -- International Multifoods Corp.
(NYSE: IMC) today reported higher sales and earnings for its second quarter ended Aug. 31, 1992.
Net earnings of $9.2 million were up 6 percent over the previous year which included results from the company's North American agribusinesses that were divested in the fourth quarter. Earnings per share increased 7 percent to 47 cents. Net sales of $542.4 million were up slightly from the prior year; sales from continuing businesses advanced 12 percent. U.S. Foodservice reported a 7 percent increase in net sales to $393.2 million and a 2 percent improvement in segment earnings to $8.1 million. Contributing to the earnings increase were lower general and administrative costs. Foodservice margins were impacted by competitive pricing pressures related to the sluggish economy and by a shift in product mix in specialty distribution. Canadian Foods posted a 24 percent improvement in net sales to $74.7 million, the result of growth in value-added bakery products and acquisitions. Pricing pressures in other product lines coupled with higher wheat costs had an adverse impact on segment earnings, which were down 39 percent for the quarter to $2.8 million. The company looks to improvements in Canadian Foods earnings in the second half of the year. Net sales in Venezuelan Foods rose 29 percent to $74.5 million with volume gains in consumer foods, industrial foods and agricultural operations. Segment earnings rose 13 percent to $6.9 million. The impact of the volume improvements more than offset lower margins in industrial flour largely due to higher wheat costs. Second-quarter results benefited from a decline in interest expense resulting from a reduction in interest rates and lower borrowing levels related to the sale of the company's agribusinesses. The effective tax rate decreased from 43.1 percent last year to 39.1 percent this year with lower non-U.S. taxes and the impact of earnings from unconsolidated affiliates. For the first six months, net earnings were $15.2 million reflecting a 3 percent improvement before a one-time charge the prior year related to an accounting change. Earnings per share increased 4 percent to 78 cents. Sales from continuing businesses rose 11 percent to $1.1 billion; net sales, including results last year from the divested agribusinesses, were about even with a year ago. "We are pleased with the improvements we have achieved in what has been a slow economic environment," said Tony Luiso, chairman, president and chief executive officer. "We have invested time and energy this year in building a stronger base from which to grow our business as the economy improves. We have spent considerable time in better understanding our customers, and I am pleased with the progress we have made in creating larger core businesses to better meet customers' needs." 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) 2nd Quarter Ended August 31 FY 1993 FY 1992 Net Sales $542.4 $541.3 Cost of Sales -478.2 -468.8 Selling, General and Administrative -46.4 -51.4 Interest, net -2.9 -5.3 Corporate -0.2 -0.2 Earnings (Losses) from Unconsolidated Affiliates 0.4 -0.3 Earnings Before Income Taxes 15.1 15.3 Income Taxes -5.9 -6.6 Net Earnings $9.2 $8.7 Net Earnings Per Share of Common Stock $0.47 $0.44 Average Shares of Common Stock Outstanding 19.3 19.6 Six Months Ended August 31 FY 1993 FY 1992 Net Sales $1,090.0 $1,094.7 Cost of Sales -961.2 -944.9 Selling, General and Administrative -96.4 -111.3 Interest, net -6.8 -10.6 Corporate -0.8 -1.4 Earnings (Losses) from Unconsolidated Affiliates 0.5 -0.4 Earnings Before Income Taxes and Cumulative Effect of Accounting Change 25.3 26.1 Income Taxes -10.1 -11.4 Earnings Before Cumulative Effect of Accounting Change 15.2 14.7 Cumulative Effect of Accounting Change, net of taxes -- -17.1 (a) Net Earnings (Loss) $15.2 -$2.4 Earnings (Loss) Per Share of Common Stock: Before Cumulative Effect of Accounting Change $0.78 $0.75 Cumulative Effect of Accounting Change -- -0.88 (a) Net Earnings (Loss) Per Share of Common Stock $0.78 -$0.13 Average Shares of Common Stock Outstanding 19.3 19.5 (a) Accounting change related to the adoption of Statement of Financial Accounting Standards No. 106 "Employers' Accounting for Post- retirement Benefits Other than Pensions." INTERNATIONAL MULTIFOODS CORPORATION EARNINGS DIGEST (Unaudited) (in millions) FY 1993 - 2nd Quarter Ended August 31 Net Operating Sales Costs Total U.S. Foodservice $393.2 -$385.1 $8.1 Canadian Foods 74.7 -71.9 2.8 Venezuelan Foods 74.5 -67.6 6.9 Total $542.4 -$524.6 $17.8 Segment Earnings $17.8 Interest, net -2.9 Corporate Unallocated -0.2 Earnings from Unconsolidated Affiliates 0.4 Earnings Before Income Taxes $15.1 FY 1992 - 2nd Quarter Ended August 31 Net Operating Sales Costs Total U.S. Foodservice $367.3 -$359.4 $7.9 Canadian Foods 60.3 -55.7 4.6 Venezuelan Foods 57.7 -51.6 6.1 Divested Businesses 56.0 -53.5 2.5 Total $541.3 -$520.2 $21.1 Segment Earnings $21.1 Interest, net -5.3 Corporate Unallocated -0.2 Losses from Unconsolidated Affiliates -0.3 Earnings Before Income Taxes $15.3 INTERNATIONAL MULTIFOODS CORPORATION EARNINGS DIGEST (Unaudited) (in millions) FY 1993 - Six Months Ended August 31 Net Operating Sales Costs Total U.S. Foodservice $813.4 -$797.4 $16.0 Canadian Foods 137.2 -133.0 4.2 Venezuelan Foods 139.4 -127.2 12.2 Total $1,090.0 -$1,057.6 $32.4 Segment Earnings $32.4 Interest, net -6.8 Corporate Unallocated -0.8 Earnings from Unconsolidated Affiliates 0.5 Earnings Before Income Taxes $25.3 FY 1992 - Six Months Ended August 31 Net Operating Sales Costs Total U.S. Foodservice $754.6 -$739.6 $15.0 Canadian Foods 114.5 -106.6 7.9 Venezuelan Foods 113.8 -102.9 10.9 Divested Businesses 111.8 -107.1 4.7 Total $1,094.7 -$1,056.2 $38.5 Segment Earnings $38.5 Interest, net -10.6 Corporate Unallocated -1.4 Losses from Unconsolidated Affiliates -0.4 Earnings Before Income Taxes and Cumulative Effect of Accounting Change $26.1 -0- 9/24/92 /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 -- MN002 -- 2936 09/24/92 08:46 EDT
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|Date:||Sep 24, 1992|
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