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Del Monte posts Q3 loss as acquisition expenses reverse operational profit
DEL Monte Pacific posted a narrower third-quarter net loss of US$2.2 million as acquisition-related expenses dragged down an operationally profitable set of results.
The loss for the three months ended Jan 31, 2015, was equal to about 0.17 US cents per share. The producer of canned fruits reported a net loss of US$6.4 million, or 0.5 US cent per share, in the year-ago quarter.
For the nine months ended Jan 31, Del Monte had a net loss of US$23.9 million, compared to the year-ago profit of US$6.5 million.
Del Monte said the net loss reflected higher expenses related to its acquisition of Del Monte Foods, Inc. Before acquisition-related and other non-recurring expenses of about US$13.5 million, net income would have been US$11.3 million, the company said.
Del Monte said US sales rose 21 per cent in the third quarter, while its branded business in Asia saw a 10 per cent increase sales.
The company expects "sustained earnings on a recurring basis" in fiscal 2015.