Impairment charges lead to loss at Pinnacle Foods
PARSIPPANY, N.J. — Due to a non-cash impairment charge of $129 million Pinnacle Foods Finance L.L.C. recorded a loss of $46,914,000 during fiscal year 2011, ended Dec. 25. The results compare unfavorably to the previous year when the company had net earnings of $22,037,000.
Sales for the fiscal year were $2,469,562,000, a 1.3% increase compared with the previous year. The company said it experienced sales growth during the year in its Birds Eye Voila complete bagged meals, Birds Eye Steamfresh vegetables and Log Cabin syrups.
The impairment charge represents goodwill impairments on the company’s Breakfast, Private Label and Food Service business units.
During the fourth quarter of fiscal 2011, the company recorded a loss of $87,524,000, which compared with net earnings of $16,100,000 during the same period of the previous year. Sales for the quarter increased nearly 4% over the previous year to $686,482,000.