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Lancaster Colony Reports Higher Third Quarter Sales and Income
Thursday, April 30, 2009 8:03 AM


(Source: PRNewswire-FirstCall)trackingCOLUMBUS, Ohio, April 30 /PRNewswire-FirstCall/ -- Lancaster Colony Corporation today reported higher sales, operating income and net income for the company's third fiscal quarter ended March 31, 2009 compared with the corresponding quarter a year ago. Highlights of the quarter:

   --  Net sales increased seven percent to $246 million versus $231 million       in the third quarter last year, reflecting continued growth in       specialty food sales.   --  After taxes, income from continuing operations totaled $21,213,000       compared with $8,002,000 for the corresponding quarter a year ago.       This growth was driven by higher sales and better margins within the       Specialty Foods segment. Third quarter earnings per share from       continuing operations totaled $.76 compared to $.27 a year ago.   --  Third quarter Specialty Foods sales increased 10 percent to $217       million benefiting from pricing actions taken over the last two years       as well as higher foodservice volumes. Operating income totaled $35.9       million compared to $14.4 million in the third quarter last year,       reflecting the pricing and volume gains along with a $2 million       favorable impact of material costs.   --  Third quarter Glassware and Candles sales decreased 13 percent to       $29.1 million, primarily reflecting weaker retail markets for candle       products. With higher paraffin wax costs and lower production levels,       segment operating income declined approximately $0.9 million from       essentially a breakeven level in the third quarter last year.   --  Net income amounted to $21,213,000. In the third quarter last year,       net income was $8,626,000, including $624,000 of income from       discontinued operations. Net income per diluted share reached 76 cents       versus 30 cents in the year-ago quarter.    --  The company's balance sheet remained strong with debt at March 31,       2009 representing less than four percent of total capitalization.    

Nine-month net sales were $798 million compared to $744 million last year. Net income was $60,685,000, or $2.16 per diluted share. Net income for the nine months a year ago totaled $40,194,000, or $1.35 per diluted share, after reflecting income from discontinued operations of $2,271,000, or eight cents per diluted share. After taxes, income from continuing operations for the nine months was $60,685,000, or $2.16 per diluted share, compared to $37,923,000, or $1.27 per diluted share earned in the first nine months last year.

Current year-to-date income from continuing operations included pretax income of $8.7 million (20 cents per share after taxes) associated with a second quarter distribution under the Continued Dumping and Subsidy Offset Act (CDSOA). In the prior year, income from continuing operations included a pretax CDSOA distribution of $2.5 million (five cents per share after taxes) as well as a pretax loss on the November 2007 sale of consumer and floral glass operations totaling $5.9 million (13 cents per share after taxes) and a noncash pension settlement charge of $3.0 million (six cents per share after taxes).

John B. Gerlach, Jr., chairman and CEO, said, "We were pleased with the Specialty Foods improvement from the unusually low operating margins of a year ago. Although the unit costs of certain key commodities remained above long-term levels, we welcomed the year-over-year improvement from last year's historically high levels. In addition to higher Specialty Foods volumes and previous pricing actions, our third quarter profitability also benefitted from operational improvements."

Looking ahead, Mr. Gerlach said, "In our food group, future trends in consumer demand remain uncertain but we expect to see continuing benefits from lower material costs and current retail pricing.



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