Printer Friendly

UNIVERSAL FOODS ANNOUNCES YEAR-END RESULTS Company Achieves Second-Best Year

 UNIVERSAL FOODS ANNOUNCES YEAR-END RESULTS
 Company Achieves Second-Best Year
 MILWAUKEE, Nov. 12 /PRNewswire/ -- Universal Foods Corporation (NYSE: UFC) today announced results for its fiscal year 1992, ended Sept. 30. Record revenue of $883,438,000 was up 5.9 percent from $834,329,000 a year ago. Earnings of $53,710,000, before the one-time charge related to the termination of the lease of the Park Rapids, Minn. potato processing plant, were down 7.0 percent from the $57,780,000 reported last year. Earnings per share at $2.02, before the one-time charge, were the second highest in the company's history, but were down 7.3 percent from the $2.18 reported the prior year. The fourth quarter termination of the Park Rapids lease resulted in a one-time, after-tax charge to earnings of $.45 per share. Reflecting that charge, earnings for fiscal 1992 were $1.57 per share.
 For the fourth quarter, revenue increased 7.4 percent to $230,757,000 from $214,920,000; earnings declined 20.2 percent to $13,725,000 from $17,203,000 (before the one-time charge), and earnings per share were down 20 percent to $.52 compared with $.65 in the comparable quarter last year. The fourth quarter continued the same pressures in the frozen french fry business that have been apparent throughout fiscal 1992. Competitive pricing in the Yeast and Dehydrated Products Divisions also contributed to the drop in earnings.
 In commenting on fiscal 1992 performance, Guy A. Osborn, chairman and chief executive officer, said, "We're pleased with the results from the Color, Flavor and Red Star(R) Specialty Products Divisions. Revenue from these businesses, combined, was up over 18 percent. More important, their profitability also improved as a result of product mix changes, productivity improvements and acquisition synergies.
 "Results from the Red Star(R) Yeast and Products Division were flat with last year, reflecting the competitive pressure of industry over- capacity. In the dehydrated products business, revenue was also flat with last year, although onion and garlic volumes were up, more than offsetting a small decline in chili product volumes. Profitability in these businesses, while attractive, declined somewhat in 1992.
 "Our Frozen Foods Division had a difficult year. Although volumes were up for both conventional and specialty fries, revenue was down 3.6 percent, and profitability also suffered. We believe the worst is over for this division because the potato crop just harvested was somewhat smaller in tonnage than last year's, selling prices have begun to firm, and our mix has changed to a greater percentage of value-added products. Improvement in this division may not be readily apparent during the first few months of the year but will gain momentum as 1993 progresses."
 Universal Foods Corporation is an international manufacturer and marketer of value-added products. These include food flavors and colors, dehydrated vegetables, a broad line of frozen potato and yeast products, and the world's most diversified line of yeast products.
 UNIVERSAL FOODS CORPORATION
 Fourth Quarter Ended
 9/30/92 9/30/91
 Revenue $230,757,000 $214,920,000
 Operating Costs and Expenses:
 ?Cost of products sold 154,605,000 144,161,000
 Selling and administrative
 expenses 49,335,000 40,141,000
 Unusual item (A) 19,300,000 ---
 Total 223,240,000 184,302,000
 Operating Income 7,517,000 30,618,000
 Interest Expense 4,768,000 3,457,000
 Earnings Before Income Taxes 2,749,000 27,161,000
 Income Taxes 1,038,000 9,958,000
 Net Earnings 1,711,000 17,203,000
 Earnings Per Common Share (A) .07 .65
 Average Shares Outstanding 26,322,000 26,658,000
 Fiscal Year Ended
 9/30/92 9/30/91
 Total Revenues $883,438,000 $834,329,000
 Operating Costs and Expenses:
 Cost of products sold 593,006,000 557,917,000
 Selling and administrative
 expenses 187,727,000 170,137,000
 Unusual item (A) 19,300,000 ---
 Total 800,033,000 728,054,000
 Operating Income 83,405,000 106,275,000
 Interest Expense 16,423,000 13,975,000
 Earnings Before Income Taxes 66,982,000 92,300,000
 Income Taxes 25,286,000 34,520,000
 Net Earnings 41,696,000 57,780,000
 Earnings Per Common Share (A) 1.57 2.18
 Average Shares Outstanding 26,608,000 26,538,000
 NOTE A: Represents a one-time charge to earnings to cover costs associated with termination of the lease of the frozen french fry production facility in Park Rapids, Minn. This charge covers lease termination expenses, leasehold improvements remaining in the plant, and costs associated with transferring or disposing of current assets. Excluding this one-time charge, earnings for the fourth quarter were $13,725,000, or $.52 a share, and earnings for fiscal 1992 were $53,710,000, or $2.02.
 -0- 11/12/92
 /CONTACT: Paula C. Norton, director, corporate communication, of Universal Foods Corporation, 414-347-3827/
 (UFC) CO: Universal Foods Corporation ST: Wisconsin IN: FOD SU: ERN


BM -- CL016 -- 0329 11/12/92 15:48 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 12, 1992
Words:833
Previous Article:JOHN BROWN STREAMLINES NORTHEASTERN OPERATIONS
Next Article:GULFSTREAM TO SHOW TWO NEW BUSINESS PASSENGER JETS TO MEDIA
Topics:


Related Articles
UNIVERSAL FOODS REPORTS EARNINGS GAINS
UNIVERSAL FOODS REPORTS EARNINGS GAINS
NORTH STAR UNIVERSAL ANNOUNCES FOURTH-QUARTER AND 12-MONTH RESULTS FOR 1991
NORTH STAR UNIVERSAL, INC. ANNOUNCES SECOND-QUARTER AND SIX-MONTH RESULTS
UNIVERSAL FOODS REPORTS INCREASED EARNINGS
UNIVERSAL FOODS CORPORATION THIRD QUARTER EARNINGS PER SHARE INCREASE 17 PERCENT
UNIVERSAL INTERNATIONAL INC. ANNOUNCES SECOND QUARTER 1995 RESULTS AND A PROFITABLE TRAILING 12 MONTH PERIOD
MICHAEL FOODS REPORTS NET EARNINGS INCREASED 16% IN 1995
Michael Foods Reports 21% First Quarter Earnings Gain

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters