Post Holdings Inc. (POST) reported that its second-quarter net earnings available to common stockholders declined to $4.3 million, or $0.13 per share, from the prior year's $10.5 million or $0.30 per share in the year ago quarter.
Adjusted net earnings available to common stockholders for the quarter were $6.3 million or $0.19 per share, down from $13.6 million or $0.39 per share last year.
Net Sales for the quarter decreased to $248.2 million from the prior year's $250.5 million, reflecting a 4% decrease in average selling prices partially offset by 3% higher volumes.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share on revenues of $255.73 million. Analysts' estimates typically exclude special items.
As announced in April, Post has decided to close its manufacturing facility in Modesto, California. The transfer of production capabilities and closure of the plant is expected to be complete by September 2014. Upon completion of the transfer and start-up of production to other facilities, which is estimated to require capital expenditures of approximately $29.8 million, Post expects to achieve net pretax annual cash manufacturing cost savings of approximately $14.0 million. Approximately 20% of the savings are expected to be achieved in fiscal 2014, and the remainder of the savings are expected to be fully phased-in by fiscal 2015.
Including the partial year expected results of the cereal, granola and snacks business of Hearthside and Attune Foods, Post now expects fiscal 2013 Adjusted EBITDA to be between $216 million and $225 million.
In May 9, the company announced that it has signed a definitive agreement to acquire the private label and branded cereal, granola and snack business of Hearthside Food Solutions. Terms of the deal call for $158 million in cash to be paid at the time of closing. The acquisition is expected to be completed by June 2013, subject to regulatory approval and other limited closing conditions.
For comments and feedback: editorial@rttnews.com