Lancaster Colony Net Falls

But adjusted earnings beat estimates.
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Lancaster Colony's

(LANC) - Get Report

second-quarter earnings fell 20.7% from a year ago due to higher freight, energy and nonfood material costs.

The Columbus, Ohio-based company earned $30.23 million, or 89 cents a share, in the quarter, compared with $38.12 million, or $1.08 a share, a year ago. Adjusted earnings were 67 cents a share. Analysts surveyed by Thomson First Call were expecting earnings of 64 cents a share.

Second quarter revenue rose 5% from a year ago to $312.6 million. Analysts were expecting revenue of $304.70 million. Gross profit almost remained the same whereas gross profit margin declined by 80 basis points to 19.2%.

"Increased sales of specialty foods and aluminum automotive accessories continued to drive our top-line improvement. So far this year our operating results have been challenged by higher freight, energy and nonfood materials costs," the company said.

Net sales of Specialty Foods and Automotive segments grew by 7% and 10%, to $189.5 million and $57.8 million, respectively, whereas sales of Glassware and candles segment slipped by 3.8% to $65.3 million.

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