TreeHouse Foods profit up 27%, beats Street

By Ameet Sachdev
Posted Nov. 5, 2010 at 8:12 a.m.

TreeHouse Foods Inc. posted a 27 percent increase in third-quarter profits, excluding unusual items, exceeding analysts’ expectations. The Westchester-based food company reported earnings of $24.8 million, or 68 cents a share, in period ended Sept. 30, compared with $28 million, or 85 cents a share, a year earlier.

Both periods had one-time charges and gains, including a 26-cent gain resulting from an insurance reimbursement in last year’s third quarter. The company took a 2-cent charge in the 2010 third quarter to reflect continuing costs associated with the closure of a pickle plant in Portland, Ore.

Adjusting for these unusual items, TreeHouse Foods said its earnings were 69 cents a share, up from 54 cents a year ago. Wall Street analysts had estimated the company to report net income of 64 cents a share.

Revenues were $464.2 million, up from $378.9 million a year ago. Excluding the acquisition of Sturm Foods, sales would have decreased slightly.

“Over it was an excellent quarter, as we delivered solid unit growth in both our legacy businesses as well as our recent acquisitions,” said Sam Reed, chairman and chief executive. “We are also very pleased with our ongoing cost control efforts, as improvements in margins and operating costs led to our strong cash flow in the quarter.”

TreeHouse sells several products, including pickles, peppers, relishes, soup, salad dressings and nondairy powdered creamer.

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