Seneca Foods Reports A Sales Increase Of 14.1% Or $44.0 Million And A Net Earnings Of $6.1 Million For The Quarter Ended October 1, 2016

MARION, N.Y., Nov. 07, 2016 (GLOBE NEWSWIRE) -- Seneca Foods Corporation (NASDAQ:SENEA) (NASDAQ:SENEB) reported for the second quarter of 2017, net earnings of $6.1 million, or $0.62 per diluted share, compared to net earnings of $6.5 million, or $0.65 per diluted share, in the fiscal second quarter of 2016.   Net sales for the second quarter ended October 1, 2016 increased from the second quarter ended September 26, 2015 by 14.1%, or $44.0 million to $357.2 million.  The increase is attributable to a sales volume increase of $87.0 million partially offset by an unfavorable sales mix and lower selling prices of $43.0 million.

The Company reported net earnings for the fiscal six months ended October 1, 2016 of $6.1 million, or $0.61 per diluted share, compared to net earnings of $9.5 million, or $0.94 per diluted share for the same period in the prior year. In the six months ended October 1, 2016, net sales increased $70.4 million, or 13.1% to $609.9 million. The increase is attributable to a sales volume increase of $116.9 million partially offset by unfavorable sales mix and lower selling prices of $46.5 million.

During the first six months of fiscal 2017, the Company recorded a restructuring charge of $1.5 million primarily related to the cost of moving equipment from a plant that was closed in the prior fiscal year.  In addition, during the first six months of fiscal 2017, the Company incurred a non-cash after-tax LIFO charge of $2.8 million, compared to a non-cash after-tax LIFO credit of $1.0 million in the first six months of fiscal 2016. 

Operating income, as reported, was $11.2 million for the quarter ended October 1, 2016 and $11.8 million for the quarter ended September 26, 2015.  During the six months ended October 1, 2016 and the six months ended September 26, 2015, this was $12.8 million and $18.0 million, respectively. Operating income, excluding the LIFO charge/credit and the restructuring charge/credit, was $14.0 million for the quarter ended October 1, 2016 and $11.8 million for the quarter ended September 26, 2015.  During the six months ended October 1, 2016 and the six months ended September 26, 2015, this was $18.6 million and $16.3 million, respectively.

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