Ralcorp Holdings: sees earnings drop in H1/2010

St. Louis / MO. (rh) Ralcorp Holdings Inc. filed its Quarterly Report on Form 10-Q for the period ended March 31, 2010. Reported diluted earnings per share (EPS) were 0,84 USD for Q1/2010 compared to 1,23 USD for the corresponding period last year, including the effects of certain special items related to goodwill impairment, Ralcorp´s former investment in Vail Resorts Inc. and the Post Foods acquisition.

Second quarter diluted EPS excluding special items were 1,12 USD compared to 0,98 USD last year, a 14 percent increase. Total segment profit contribution grew 13 percent excluding the incremental amounts from Harvest Manor Farms (Harvest Manor), acquired March 20, 2009 and included in the Snacks, Sauces + Spreads segment. Other reported results for the quarter ended March 31, 2010 included:

• Net sales increased two percent from last year´s second quarter, primarily as a result of 42,3 million USD of sales from Harvest Manor partially offset by declines in most other businesses. Excluding Harvest Manor sales, second quarter sales volume was up two percent, but net selling prices were reduced in several product categories as a result of contract terms, competitors´ pricing actions, or product promotions.
• Total segment profit contribution was up 15 percent from a year ago, primarily due to lower raw material costs and the Harvest Manor acquisition.
• Earnings before income taxes and equity earnings were 73,8 million USD (compared to 98,5 million USD a year ago), including the goodwill impairment loss, Post transition and integration costs, and the prior year gains on the Vail forward sale contracts and the sale of Vail shares.
• Net earnings were 46,7 million USD compared to 70,2 million USD last year.
• Adjusted EBITDA was 157,2 million USD compared to 139,3 million USD last year, largely due to lower ingredient costs as well as lower transition and integration costs and incremental EBITDA from Harvest Manor.

Effective October 01, 2009, the Company reorganized its management reporting to combine the businesses formerly included in separate Snacks and Sauces + Spreads segments into a single operating segment named Snacks, Sauces + Spreads. In addition, the Company now provides separate information for Branded Cereal Products and Other Cereal Products (formerly combined as Cereals).

Info: The complete statement «Ralcorp Holdings Announces Results for the Second Quarter of Fiscal 2010» inclusive tables is available on Ralcorp´s web server.