Specialty foods distributor United Natural Foods, Inc. (UNFI) Tuesday reported a slight increase in second-quarter profit, reflecting higher net sales. However, the company has cut its fiscal 2013 earnings outlook.
In the second quarter, the company's net income grew to $22.62 million or $0.46 per share from $22.01 million or $0.45 per share in the previous year.
On average, 15 analysts polled by Thomson Reuters expected earnings per share of $0.50 for the quarter. Analysts' estimates typically exclude one-time items.
Steven Spinner, president and chief executive officer of the company said, "We were extremely focused on bringing resolution to our labor dispute in Auburn, Washington during the second quarter. By working together, we were able to reach a fair and equitable agreement. Our associates are back to work and the facility is back at full capacity."
Quarterly net sales increased 12.3 percent to $1.45 billion, which also came in line with analysts' estimates.
Looking ahead to fiscal 2013, the company now expects earnings per share to be in the range of $2.12 to $2.18, lower than its earlier expectations of $2.14 to $2.24 per share.
United Natural Foods said it expects to incur roughly $0.6 million to $1.0 million in additional expenses related to the Auburn, Washington labor issue in the third quarter.
Excluding the impact of $1.6 million write-off of intangible asset, $4.9 million unclaimed property settlement and discrete tax benefit of $2.7 million primarily related to the reversal of reserves for uncertain tax positions, the company sees fiscal 2013 earnings per share in the range of about $2.15 to $2.21.
Analysts project fiscal 2013 earnings of $2.22 per share.
UNFI closed Monday's regular trading at $53 on the Nasdaq.
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