COLUMBUS, Ohio, Aug. 20 /PRNewswire-FirstCall/ - Lancaster Colony Corporation (Nasdaq: LANC) today reported higher sales, income from continuing operations and net income for the company's fiscal year and fourth fiscal quarter ended June 30, 2009 compared with the corresponding periods a year ago. Highlights of the fiscal year:

• Net sales increased seven percent to $1,051 million versus $981 million last year.
• Income from continuing operations was $89,086,000, compared to $48,439,000 earned in the preceding fiscal year. Diluted earnings per share from continuing operations were $3.18 compared to $1.64 a year ago. Fiscal 2009 results 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 fiscal 2008, the pretax CDSOA distribution was $2.5 million (five cents per share after taxes), and pretax income of approximately $1.7 million (four cents per share after taxes) was also recognized from a fourth-quarter adjustment of self-insured general liability insurance to reflect favorable claims development for prior years. Fiscal 2008 results also included a pretax loss on the November 2007 sale of consumer and floral glass operations totaling $6.4 million (14 cents per share after taxes) and a pretax noncash pension settlement charge of $3.0 million (seven cents per share after taxes).
• Net income totaled $89.1 million or $3.18 per diluted share. Prior year net income totaled $37.6 million, or $1.28 per diluted share, after a loss from discontinued operations of $10.8 million, or $.37 per diluted share, which included a net loss of $13.5 million on the sale of automotive operations.
• The cash dividend was increased for the 46th consecutive year, and 496,000 shares were repurchased at a cost of approximately $17 million.
• The balance sheet remained strong with no debt outstanding compared to $55 million a year ago. The company's $160 million unsecured revolving credit facility was unused and fully available.
  

Fourth Quarter Results

Highlights of the fourth quarter ended June 30, 2009 included the following:

• Net sales increased seven percent to $253 million versus $237 million in the year ago quarter.
• Specialty Foods sales were up seven percent to a record $226.8 million, as both retail and foodservice sales posted increases. This growth was mostly generated by higher pricing and stronger retail volumes, which benefited from new products and a later Easter this year. Segment operating income more than doubled to a record $46.8 million, reflecting increased sales, a higher retail sales mix and lower raw-material costs.
• Glassware and Candles sales increased five percent to $26.6 million primarily due to higher candle sales to the mass market. The segment's quarterly operating loss improved to $0.9 million from $3.5 million a year ago and reflected higher sales, due in part to higher pricing. Increased input and production costs mitigated the extent of improvement. Prior-year results included pretax restructuring costs for idled glass operations of $1.1 million (two cents per share after taxes).
• Income from continuing operations totaled $28,401,000. The 2008 fourth quarter income from continuing operations was $10,516,000 and included pretax income pertaining to self-insured reserves for general liability insurance of approximately $1.7 million (four cents per share after taxes) reflecting more favorable claims experience than originally projected for prior years. Diluted earnings per share from continuing operations were $1.01 compared to 37 cents a year ago.
• Fourth quarter net income totaled $28.4 million, or $1.01 per diluted share, versus the year ago net loss of $2.6 million, or $.09 per diluted share, after a loss from discontinued operations of $13.1 million, or $.46 per diluted share, which included a $13.3 million loss on the sale of automotive operations.
  

Chairman and CEO John B. Gerlach, Jr. said, "Similar to the third quarter, we continued to see favorable trends in the fourth quarter that allowed our Specialty Foods segment's operating margin percentages to return closer to historical levels.