Consumer products maker Lancaster Colony Corp. (LANC) reported Thursday a decline in fourth-quarter profit, as its Glassware and Candles segment operating income was impacted by lower sales and higher wax costs. The company's net sales increased 7 percent and beat analysts' expectations.
Looking ahead to the fiscal year ending June 2013, the company said it expects sales should continue to benefit from the roll-out of new retail food products.
John Gerlach, Jr., chairman and CEO of the company said, "We were pleased to conclude fiscal 2012 with solid fourth-quarter improvements in sales and operating income despite the year-long challenge of generally higher material costs. Throughout the year, Specialty Foods sales benefited from our product innovation efforts across both retail and foodservice lines."
Net sales from Specialty Foods segment increased 8 percent from last year, while Glassware and Candles sales of $25.6 million were essentially even with year-ago levels.
In the fourth quarter, the company's net income declined to $25.96 million or $0.95 per share from $29.29 million or $1.07 per share reported last year. The company said its prior-year results included a pretax Continued Dumping and Subsidy Offset Act distribution of $13.4 million, or about $0.33 per share after tax.
On average, 5 analysts polled by Thomson Reuters expected earnings per share of $0.79 for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 7 percent to $273.96 million, which also came in above analysts' estimate of $263.07 million.
For the full year, the company posted a net income of $95.81 million or $3.51 per share, lower than $106.36 million or $3.84 per share in the prior year. Annual sales grew 4 percent to $1.13 billion from $1.09 billion a year ago.
The company anticipates Specialty Foods operating income in fiscal 2013 may initially benefit from modestly higher pricing and from overall commodity costs beginning the year somewhat below year ago levels. In Glassware and Candles, it expects seasonal sales growth and higher production levels.
LANC is currently trading at $72.03, up $2.68 or 3.86 percent, on a volume of 30 thousand shares in the Nasdaq.
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