UNIVERSAL FOODS POSTS ANOTHER RECORD YEAR
UNIVERSAL FOODS POSTS ANOTHER RECORD YEAR MILWAUKEE, Nov. 14 /PRNewswire/ -- Universal Foods Corporation
(NYSE/PSE: UFC) today announced record performance for fiscal 1991, ended Sept. 30. Net earnings were up 14 percent, and earnings per share were up 13 percent. Revenue increased 10 percent. These comparisons exclude the unusual item resulting from the sale of the Cheese Division in April 1990 and include the effect of the pooling of interests treatment of the Fantasy Flavors acquisition in September 1991.
Net earnings of $57,780,000 during 1991 compared with net earnings of $50,670,000 in 1990; earnings per share were $2.18 compared with $1.93, and revenue was $834,329,000, up from $758,540,000. Including the one-time gain from the sale of the Cheese Division, net earnings for fiscal 1990 were $51,892,000, and earnings per share were $1.98. Net earnings for the fourth quarter increased 15.8 percent to $17,203,000 from $14,853,000. Earnings per share were $.65 compared with $.56, a 16 percent gain. Revenue was $214,920,000 compared with $207,224,000 in the comparable quarter last year. According the Guy A. Osborn, chairman and chief executive officer, "Fiscal 1991 performance continued the strong growth trend begun in the mid-1980s. The Flavor, Color and Dehydrated Products Division experienced excellent years in 1991 with double-digit volume growth and consequent market share gains. Unit
volumes in Color were up 16 percent, and in Dehydrated Products up 10 percent. Revenue in Flavor, which is our measurement of volume growth in this division, rose 18 percent. Our yeast businesses also performed well, overall. The Frozen Foods Division, with both revenue and volume gains in 1991, experienced profit weakness resulting from higher processing costs due to a poor quality potato crop as well as sales price pressure from a weak fast-food industry.
"We anticipate continued growth throughout our businesses in 1992, although pricing softness could remain with our frozen foods business for a number of months." Osborn also said, "Analysis of our results is complicated somewhat by the pooling of interests treatment of the Fantasy Flavors acquisition. Revenue from Fantasy was $37,077,000 in 1991 and $34,811,000 in 1990. As a result of the pooling, 1990 earnings per share, prior to the gain from the sale of the Cheese Division, were restated from $1.90. Fantasy's contribution to 1991 results was sufficient to offset acquisition costs and to generate earnings necessary for the additional shares outstanding as a result of the transaction. Both the Fantasy Flavors and Williams acquisitions are expected to be important contributors to corporate earnings growth in the future." Universal Foods in an international manufacturer and marketer of value-added food products. These include food flavors, food colors, the world's most diversified lines of frozen potato and yeast products, and dehydrated vegetables. UNIVERSAL FOODS EARNINGS Fourth Quarter Ended 9/30/91 9/30/90 Total Revenues $214,920,000 $207,224,000 Operating Costs and Expenses: Cost of products sold 144,161,000 133,793,000 Selling and administrative expenses 40,141,000 46,869,000 Total 184,302,000 180,662,000 Operating Income 30,618,000 26,562,000 Interest Expense 3,457,000 2,591,000 Earnings Before Income Taxes 27,161,000 23,971,000 Income Taxes 9,958,000 9,118,000 Net Earnings 17,203,000 14,853,000 Net Earnings Per Common Share .65 .56 Average Shares Outstanding 26,658,000 26,364,000 Fiscal Year Ended 9/30/91 9/30/90 Total Revenues $834,329,000 $873,697,000 Operating Costs and Expenses: Cost of products sold 557,917,000 609,552,000 Selling and administrative expenses 170,137,000 169,797,000 Unusual item (A) --- (2,899,000) Total 728,054,000 776,450,000 Operating Income 106,275,000 97,247,000 Interest Expense 13,975,000 12,179,000 Earnings Before Income Taxes 92,300,000 85,068,000 Income Taxes 34,520,000 33,176,000 Net Earnings 57,780,000 51,892,000 Net Earnings Per Common Share 2.18 1.98 Average Shares Outstanding 26,538,000 26,250,000 (A) Net gain on the sale of the Cheese Division, combined with the redeployment, disposition and reduction in carrying value of certain assets, which increases net earnings for the year by $1,222,000 ($.05 per share). -0- 11/14/91 /CONTACT: Paula C. Norton of Universal Foods Corporation, 414-347-3827/ (UFC) CO: Universal Foods Corporation ST: Wisconsin IN: FOD SU: ERN LC -- CL017 -- 4534 11/14/91 15:43 EST
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|Date:||Nov 14, 1991|
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