Thursday, food company Ralcorp Holdings, Inc. (RAH) reported an increase in profit for the first quarter as revenues edged up 2% driven by higher sales from Harvest.
Ralcorp's first quarter net income increased to $67.2 million from $65.5 million in the comparable quarter last year. On per share basis, profit was $1.19, up from $1.15 per share, that includes the effects of certain special items related to Ralcorp's former investment in Vail Resorts, Inc. (MTN) and the Post Foods acquisition.
Excluding the special items, earnings per share was $1.20, a 38% increase from $.87 a year-ago. On average, nine analysts expected the company to earn $1.03 per share for the quarter. Analysts' estimates typically exclude one-time items.
The St. Louis, Missouri-based company's revenue for the first quarter was $991.9 million, up 2% from $968.2 million, primarily due to $53.8 million of sales from Harvest, partially offset by declines in most other businesses. Seven street analysts expected the company to generate revenue of $988.47 million for the first quarter.
Sales from cereals was down to $440.8 million from $449.3 million and sales from snacks, sauces and spreads increased to $210.4 million from $178.9 million mainly due to the acquisitions. Sales from its frozen bakery products grew to $369.3 million from $327.8 million in the prior year quarter.
Earnings before income taxes and equity loss was $105.6 million compared to $110.8 million a year ago, including Post transition and integration costs and the prior year gains on the Vail forward sale contracts and the sale of Vail shares.
The company said that total segment profit contribution was up 24% from a year ago, primarily due to lower raw material costs and the Harvest acquisition.
RAH closed Thursday's regular trading session at $61.05, down $0.64 or 1.04% on a volume of 0.75 million shares on the NYSE. In the after hours the shares rose 3.19% or $1.95, trading at $63.00.
For comments and feedback: editorial@rttnews.com