American Italian Pasta Reports Larger 4Q Profit

DAVID TWIDDY

KANSAS CITY, Mo. (AP) — American Italian Pasta Co., the nation's largest maker of dry pasta, said Tuesday that its fourth-quarter earnings more than doubled despite an 8 percent drop in sales.

Company officials also said they expected the struggling economy to keep pasta sales high for the rest of the year and well into 2010.

"The jobless recovery will continue to challenge consumers' food budgets and pasta is a perfect solution," Chief Executive Officer Jack Kelly told analysts in a conference call.

The Kansas City-based company reported earning $15.8 million, or 73 cents per share, for the July-September period. By comparison, the company earned $7.3 million, or 36 cents per share, during the same period a year ago.

Revenue during the quarter declined from $162 million to $149 million.

Analysts surveyed by Thomson Reuters had expected profits of 68 cents per share on $153.2 million in revenue.

The company said retail sales declined 3 percent as a 7.7 percent decrease in average selling prices offset a 4.5 percent increase in volume. Sales in institutional channels, including restaurants and other food manufacturers, fell 23 percent from a combination of a 17 percent drop in prices and a 6 percent decrease in volume.