Rochester, NY-based Agrilink, an agricultural marketing cooperative, yesterday [Thursday] reported its Q2 fiscal 2002 results. These earnings are consolidated with those of its wholly-owned subsidiary, Agrilink Foods, Inc.
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Operating earnings from ongoing businesses for the quarter increased US$7.9m or 24.1% to US$40.7m from US$32.8m in the prior year. The results in the second quarter were, among other things, positively impacted by the company-wide focus to control costs and improve margins. Net sales, however, declined from ongoing businesses in the second quarter by US$32.8m or 10% compared to the prior year. US$8.4m of the decline was associated with a planned reduction in a co-pack agreement for canned vegetables in the Midwest. The remaining decrease in net sales was impacted by overall market declines in the frozen vegetable category and various competitive initiatives during the quarter.
Operating earnings from ongoing businesses for the six-month period increased US$1.9m or 3.6% to US$54m from US$52.1m in the prior year. Net sales from ongoing businesses for the six months ended December 29, 2001, have however, decreased US$46.9m or 7.9% to US$543.8m from US$590.7m in the prior year. Of this decline, US$21.5m was associated with the planned reduction in the co-pack agreement for canned vegetables in the Midwest.
Agrilink President and CEO, Dennis M. Mullen commented: “The focus of our organization this year has been on reducing costs and controlling our margins.
“Our second quarter results clearly demonstrate that we have begun to experience the benefit of these efforts. We do however, continue to be concerned about recent market declines and competitive pressures experienced in our industry. Our focus for the remainder of our fiscal year will, be to seek opportunities to expand our business while maintaining the levels of profitability we have worked to diligently achieve.”
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