COLUMBUS, Ohio, PRNewswire-FirstCall/ -- Lancaster Colony Corporation today reported higher sales for the company's third fiscal quarter ended March 31, 2008, compared with the corresponding quarter a year ago.
Nine-month net sales were $861 million compared to $820 million last year. Net income was $40,194,000, or $1.35 per diluted share, including a net loss from discontinued operations of $159,000 or one cent per diluted share. Net income for the nine months a year ago totaled $45,109,000, or $1.42 per diluted share, after reflecting a net loss from discontinued operations of $3,336,000, or $.11 per diluted share. Income from continuing operations for the nine months was $40,353,000, or $1.35 per diluted share, compared to $48,445,000, or $1.53 per diluted share earned in the first nine months last year.
Current year-to-date income from continuing operations included pretax income of $2.5 million (five cents per share after taxes) associated with a second quarter distribution under the Continued Dumping and Subsidy Offset Act (CDSOA), 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). In the prior year, the pretax CDSOA distribution was $0.7 million (one cent per share after taxes).
John B. Gerlach, Jr., chairman and CEO, said, "While generally pleased with our Specialty Foods sales growth and our Automotive progress, substantially higher food commodity costs were far more than our pricing initiatives could overcome. Throughout the current fiscal year, we continued to utilize our cash flow to support shareholder value, investing over $13 million in Specialty Foods capital projects, paying $24.6 million in cash dividends and spending $76.8 million on repurchases of Lancaster Colony common shares."
Looking ahead, Mr. Gerlach said, "In our food group, a recently implemented second round of pricing actions should benefit our fiscal fourth quarter, and we anticipate further initiatives becoming effective just after the fiscal year ends. The fourth quarter is a seasonally slow quarter for our candle operations, and the current fiscal year's lower candle production levels will have a near-term adverse impact on operating results despite leading to better-balanced inventory levels. Our automotive operations will likely be challenged by expected production curtailments among original equipment customers."
Mr. Gerlach added, "As we continue to explore strategic alternatives for our remaining nonfood operations, we also continue to look for good-fitting food acquisitions."
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