Ralcorp Holdings has cut its forecast for full-year profits due to low branded cereal volumes and a delay in securing price increases to offset commodity costs.
The US food maker said yesterday (14 July) it now expects diluted earnings per share for the year ending 30 September to be between US$5.01 and $5.16.
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Excluding special items relating to legal settlements, plant closures, mergers and integration, it expects adjusted diluted earnings per share for the year to be between $5.20 and $5.35, down on its prior forecast of $5.45 to $5.55.
Ralcorp reiterated that its recently-announced cost-cutting programme is expected to result in an additional $80-100m in operating profit over the 2012-2014 fiscal years. It expects to spend some $115-135m in completing the projects.
The company, which also announced plans yesterday to spin off its branded cereals business Post Foods, is scheduled to announce its full-year results on 9 August.
