Thursday reported higher second-quarter profit, but guided below analysts' expectations for the third quarter, saying "higher-than-anticipated energy and logistics costs will put pressure on our bottom line."
The San Francisco-based food company posted net income of $41.8 million, or 20 cents a share, vs. $40.7 million, or 19 cents a share, in the year-ago period, based on continuing operations. Integration costs totaled a penny a share, vs. 2 cents a share a year ago.
Analysts expected 21 cents a share, according to Thomson First Call.
Revenue increased 6.9% to $846.6 million, "driven by new product introductions, increased pricing, and higher volumes from increased marketing support and successful merchandising. "
"Our second-quarter results reflect successful performance in the marketplace, although costs were negatively impacted by inflationary pressures," the company said. "In a tough inflationary environment, we largely offset industry-wide cost pressures with carefully executed price increases."
For the third quarter of its fiscal 2005 year, Del Monte forecast EPS of 21 cents to 25 cents, with sales revenue of $811 million. Analysts expect 30 cents and $843.6 million.
For full-year 2005, the company now expects revenue of $3.13 billion and EPS from continuing operations of 76 cents to 81 cents, including charges of 6 cents a share. This company earned 76 cents a share in the year-ago period, including items worth 13 cents a share. Analysts expect revenue of $3.17 billion and EPS of 89 cents.
Previously, Del Monte forecast EPS from continuing operations of 81 cents to 86 cents, including integration expense of approximately 6 cents a share.
Shares ended at $10.67 Wednesday.