The White Plains, N.Y., food distributor said it expects a breakeven quarter, well short of the 75-cent profit estimated by analysts surveyed by Thomson Financial.
"During the first quarter the value of the physical cash commodity markets did not mirror the increase in value in the futures markets, which we use to hedge our commodity inventories and forward purchases. This resulted in unrealized mark- to-market losses," said CEO Alberto Weisser. "Earnings can shift among quarters in our industry, so we view our business on an annual basis. Market fundamentals are solid, and we expect to achieve our forecasted full year results."
The company reaffirmed its full-year earnings guidance of $4.56 to $4.71 a share.