Ralcorp Holdings: profit and sales lower in Q3/2010

St. Louis / MO. (rh) Ralcorp Holdings Inc. reported on July 19th the results for the period ended June 30, 2010. Reported diluted earnings per share (EPS) were 0,95 USD for the quarter and 2,98 USD for the nine months ended June 30, 2010 compared to 1,31 USD and 3,69 USD for the corresponding periods last year, including the effects of certain special items related to acquisitions, Post Foods transition and integration, goodwill impairment, and Ralcorp´s former investment in Vail Resorts Incorporated. Third quarter diluted EPS excluding these special items were 1,11 USD compared to 1,30 USD last year. Other reported results for the quarter included:

• Net sales decreased three percent from last year´s third quarter, primarily as a result of reduced net selling prices in several product categories due to product promotions, established pricing formulas, or competitors´ pricing actions, partially offset by incremental sales from recent acquisitions in the Snacks, Sauces + Spreads segment.
• Total segment profit contribution was down 14 percent from a year ago, primarily due to unfavourable pricing variances, partially offset by lower overall raw material costs.
• Earnings before income taxes and equity earnings were 79,4 million USD (compared to 105,7 million USD a year ago), including acquisition-related costs, Post transition and integration costs, the prior year loss on the Vail forward sale contracts, and the prior year gain on sale of Vail shares.
• Net earnings were 53,0 million USD compared to 74,8 million USD last year (which had included 9,2 million USD of net gains and earnings related to Ralcorp´s former investment in Vail Resorts, net of taxes). The third quarter of fiscal 2010 included discrete income tax adjustments based on the completion of prior year tax returns and assessments of uncertain tax positions, which reduced the current year provision by a total of 2,9 million USD.
• Adjusted Ebitda was 156,9 million USD compared to 171,0 million USD last year.

Info: Ralcorp Holdings announces results for the third quarter of fiscal 2010 (complete press release).