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TreeHouse Foods Slips To Loss In Q3

TreeHouse Foods Inc. (THS) reported that its third-quarter net loss was $177.8 million or $3.16 per share, compared to net income of $2.6 million or $0.05 per share in the prior year.

Net loss from continuing operations for the third quarter of 2019 was $61.0 million, compared to net earnings from continuing operations of $12.2 million for the same period of the previous year.

Adjusted earnings per share from continuing operations were $0.55 compared to adjusted earnings per share from continuing operations of $0.57 for the third quarter of 2018. Results for the quarter reflected non-cash impairment charges of $88 million (pre-tax) related to a write-down of long-lived assets in connection with two historical acquisitions, partially offset by tax planning and continued SG&A discipline.

Net sales for the third quarter were $1.06 billion, a decrease of 5.4% from $1.12 billion last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share and revenues of $1.09 billion for the third-quarter. Analysts' estimates typically exclude special items.

For the fourth quarter, TreeHouse anticipates adjusted earnings per diluted share from continuing operations in the $1.03 to $1.23 range, up approximately 13% year-over-year at the midpoint, and net sales between $1.11 to $1.21 billion, down approximately 3% year-over-year at the midpoint. Analysts expect the company to report earnings of $1.24 per share and revenues of $1.19 billion for the fourth-quarter.

TreeHouse revised its full year 2019 adjusted earnings from continuing operations guidance to $2.30 - $2.50 per diluted share. The company anticipates sequential volume improvement will continue in the fourth quarter, where a pivot to growth is reflected in the midpoint of the guidance. However, 2019 net sales is now expected to be between $4.26 billion to $4.36 billion.

Wall Street currently is looking for fiscal year 2019 earnings of $2.50 per share on annual revenues of $4.38 billion.

Separately, TreeHouse Foods said that William J. Kelley, Jr., currently Senior Vice President, Corporate and Operations Finance, has been appointed Interim Chief Financial Officer of TreeHouse, effective immediately. He replaces Matthew Foulston, who after a three-month transition period will be pursuing other career opportunities.

TreeHouse noted that it has engaged an executive search firm to review candidates for a permanent chief financial officer. The company will be considering both internal and external candidates.

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