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TreeHouse Foods Boosts 2010 Outlook

TreeHouse Foods has raised its full-year guidance to $2.70 to $2.75 a share from $2.65 to $2.70 a share after topping second-quarter consensus estimates.
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NEW YORK (TheStreet) -- TreeHouse Foods (THS) - Get Report has raised full-year guidance to $2.70 to $2.75 a share from $2.65 to $2.70 after topping second-quarter consensus estimates.

The Wall Street full-year consensus estimate has been earnings of $2.72 on revenue of $1.85 billion.

TreeHouse Foods said net income for the second quarter was $21.7 million compared with $18.4 million last year. Earnings for the quarter were 60 cents a share compared with 58 cents a share in the year-ago period. On an adjusted basis, earnings improved by 40% to 70 cents a share compared with 50 cents a share last year.

Net sales for the second quarter totaled $446.2 million compared with $372.6 million last year, which represents an increase of 19.8%. Excluding the acquisition of Sturm Foods, sales would have decreased by 1.1% due to lower sales in TreeHouse Foods' industrial and export segment.

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Analysts on average were expecting earnings of 62 cents a share on revenue of $473.59 million.

During the quarter, TreeHouse Foods saw retail grocery sales increase 30.4% primarily due to the acquisition of Sturm Foods, and despite lower-branded baby food volumes, the company said.

Sales within the food-away-from-home segment rose 7% despite economic conditions that continue to strain the food away from home marketplace, the company noted. Industrial and export sales were down 5.4% due to a combination of lower unit sales of bulk powder and lower pricing on pass through sales contracts.

Shares of TreeHouse Foods have dipped 0.8% to $47.21 in pre-market activity.

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-- Reported by Andrea Tse in New York

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