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MULTIFOODS REPORTS IMPROVED EARNINGS FOR THIRD QUARTER, NINE MONTHS

 MINNEAPOLIS, Dec. 21 /PRNewswire/ -- International Multifoods Corp. (NYSE: IMC) today reported a 4 percent improvement in earnings per share for the third quarter and for the first nine months of fiscal 1993 before an accounting change the prior year. Last year also included results from the company's agribusinesses divested early in last year's fourth quarter.
 For the quarter ended Nov. 30, 1992, net earnings were $15.4 million, or 80 cents per share, compared with $15.1 million, or 77 cents per share, the prior year. Net sales of $596.8 million were down from a year ago; sales from continuing businesses advanced 5 percent.
 For the nine months, earnings increased to $30.6 million, or $1.58 per share. Sales from continuing businesses were up 9 percent to $1.7 billion.
 Net earnings for the quarter benefited from lower taxes and interest expense. The decline in interest expense came primarily from lower interest rates and borrowing levels related to the sale of the agribusinesses. The reduced effective tax rate was the result of lower non-U.S. taxes.
 "I am pleased with the progress we are making in building a more efficient and customer-responsive organization," said Tony Luiso, chairman, president and chief executive officer. "Our businesses, particularly in the U.S. and Canada, continue to be affected by price deflation in the food industry as a result of heightened competition."
 In U.S. Foodservice, net sales for the third quarter increased 3 percent to $445.4 million. Segment earnings of $10.8 million were down 3 percent. A product mix shift in specialty distribution as well as competitive pricing pressures in several product lines affected foodservice margins. The surimi seafood product line, which was negatively affected last year by rising raw material costs, showed improvement. For the nine months, U.S. Foodservice reported a 3 percent improvement in segment earnings to $26.8 million on a 6 percent gain in net sales to $1.3 billion.
 Canadian Foods' net sales for the quarter rose 13 percent to $89.9 million and segment earnings were up slightly to $9.5 million. Results benefited from an acquisition in specialty bakery products earlier this year, offset by a 9 percent devaluation of the Canadian currency versus a year ago. Pricing pressures across the Canadian food industry also had an impact on margins. For the nine months, net sales in Canadian Foods were up 17 percent to $227.1 million. Segment earnings declined 21 percent to $13.7 million due to the same factors affecting the quarter.
 Venezuelan Foods realized a 5 percent increase in net sales for the third quarter to $61.5 million with volume growth across most product categories. Segment earnings of $6 million were about even with a year ago due to higher raw material costs and pricing pressures in corn flour. Segment earnings in local currency advanced 26 percent on a 41 percent improvement in net sales. For the nine months, Venezuelan Foods reported an 8 percent increase in segment earnings in U.S. dollars to $18.2 million. Net sales rose 16 percent to $200.9 million.
 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)
 3rd Quarter Ended
 November 30
 FY 1993 FY 1992
 Net Sales $596.8 $635.0
 Cost of Sales (517.7) (546.0)
 Selling, General and Administrative (52.8) (57.7)
 Interest, net (3.2) (4.5)
 Corporate 0.9 (0.3)
 Earnings (Losses) from
 Unconsolidated Affiliates 0.4 (0.1)
 Earnings Before Income Taxes 24.4 26.4
 Income Taxes (9.0) (11.3)
 Net Earnings $ 15.4 $ 15.1
 Net Earnings Per Share of Common Stock $ 0.80 $ 0.77
 Average Shares of Common Stock
 Outstanding 19.3 19.5
 Nine Months Ended
 November 30
 FY 1993 FY 1992
 Net Sales $1,686.8 $1,729.7
 Cost of Sales (1,478.9) (1,490.9)
 Selling, General and Administrative (149.2) (169.0)
 Interest, net (10.0) (15.1)
 Corporate 0.1 (1.7)
 Earnings (Losses) from Unconsolidated
 Affiliates 0.9 (0.5)
 Earnings Before Income Taxes and
 Cumulative Effect of Accounting
 Change 49.7 52.5
 Income Taxes (19.1) (22.7)
 Earnings Before Cumulative Effect
 of Accounting Change 30.6 29.8
 Cumulative Effect of Accounting
 Change, net of taxes - (17.1)(1)
 Net Earnings $ 30.6 $ 12.7
 Earnings Per Share of Common Stock:
 Before Cumulative Effect of
 Accounting Change $ 1.58 $ 1.52
 Cumulative Effect of Accounting Change - (0.88)(1)
 Net Earnings Per Share of
 Common Stock $ 1.58 $ 0.64
 Average Shares of Common
 Stock Outstanding 19.3 19.5
 (1) 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 - 3rd Quarter Ended November 30
 Net Operating
 Sales Costs Total
 U.S. Foodservice $445.4 $(434.6) $10.8
 Canadian Foods 89.9 (80.4) 9.5
 Venezuelan Foods 61.5 (55.5) 6.0
 Total $596.8 $(570.5) $26.3
 Segment Earnings $26.3
 Interest, net (3.2)
 Corporate Unallocated 0.9
 Earnings from Unconsolidated Affiliates 0.4
 Earnings Before Income Taxes $24.4
 FY 1992 - 3rd Quarter Ended November 30
 Net Operating
 Sales Costs Total
 U.S. Foodservice $432.3 $(421.2) $11.1
 Canadian Foods 79.9 (70.5) 9.4
 Venezuelan Foods 58.8 (52.8) 6.0
 Divested Businesses 64.0 (59.2) 4.8
 Total $635.0 $(603.7) $31.3
 Segment Earnings $31.3
 Interest, net (4.5)
 Corporate Unallocated (0.3)
 Losses from Unconsolidated Affiliates (0.1)
 Earnings Before Income Taxes $26.4
 INTERNATIONAL MULTIFOODS CORPORATION
 EARNINGS DIGEST
 (Unaudited)
 (in millions)
 FY 1993 - Nine Months Ended November 30
 Net Operating
 Sales Costs Total
 U.S. Foodservice $1,258.8 $(1,232.0) $26.8
 Canadian Foods 227.1 (213.4) 13.7
 Venezuelan Foods 200.9 (182.7) 18.2
 Total $1,686.8 $(1,628.1) $58.7
 Segment Earnings $58.7
 Interest, net (10.0)
 Corporate Unallocated 0.1
 Earnings from Unconsolidated Affiliates 0.9
 Earnings Before Income Taxes $49.7
 FY 1992 - Nine Months Ended November 30
 Net Operating
 Sales Costs Total
 U.S. Foodservice $1,186.9 $(1,160.8) $26.1
 Canadian Foods 194.4 (177.1) 17.3
 Venezuelan Foods 172.6 (155.7) 16.9
 Divested Businesses 175.8 (166.3) 9.5
 Total $1,729.7 $(1,659.9) $69.8
 Segment Earnings $69.8
 Interest, net (15.1)
 Corporate Unallocated (1.7)
 Losses from Unconsolidated Affiliates (0.5)
 Earnings Before Income Taxes and Cumulative
 Effect of Accounting Change $52.5
 -0- 12/21/92
 /CONTACT: Linda K. Berg (media), 612-340-3755, or Yolanda M.


Scharton (investors), 612-340-3621, both of International Multifoods/
 (IMC)


CO: International Multifoods Corporation ST: Minnesota IN: FOD SU: ERN

AL -- MN013 -- 8967 12/21/92 18:32 EST
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Date:Dec 21, 1992
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