Lance earnings more than triple
July 24, 2009
by Bakingbusiness Staff
CHARLOTTE, N.C. — Net income of Lance, Inc. in the second quarter ended June 27 was $9,528,000, equal to 30c per share on the common stock, up 252% from $2,708,000, or 9c per share, in the second quarter of 2008.
Results in 2008 were affected adversely by surging shortening and flour costs "not immediately offset by increased prices to customers," the company said. Second-quarter sales were $236,355,000 up 11%. Higher selling prices accounted for about 4 percentage points of the increase. Increased volume, including the impact of the Archway acquisition, accounted for about 7 points. Branded sales in the second quarter were up 5% from the second quarter last year while private label sales were up 20%.
"During the quarter we made a significant investment in our Lance brand with the launch of the first nationwide television advertising campaign supporting our Lance sandwich crackers," said David V. Singer, president and chief executive officer, when second-quarter results were reported. "We also continued to make significant progress on re-establishing and integrating the Archway business, resulting in the acquisition becoming accretive during the quarter."
Offering updated full-year guidance, Lance projected 2009 earnings per share of $1.15 to $1.25, up 5c on both ends from the forecast issued April 25. Sales and capital expenditures estimates for the year were not revised.