Lancaster Colony Corp., a maker of specialty foods, glassware, candles and automotive products, reported on 28 October 2004 a fall in its 1Q fiscal 2004 profit because of rising raw materials costs an…
Lancaster Colony Corp., a maker of specialty foods, glassware, candles and automotive products, reported on 28 October 2004 a fall in its 1Q fiscal 2004 profit because of rising raw materials costs and restrained pricing power. For the three months ended 30 September 2004 the company posted earnings of USD 18.4 million, or USD 0.52 per share, down from USD 19.7 million, or USD 0.55 per share, for the year-ago quarter. The results include pretax income of about USD 400,000, or USD 0.01 per share, related to the liquidation of inventories carried at substantially lower prior years“ costs, down from USD 1.6 million, or USD 0.03 per share, in the year-ago quarter. Revenue for the quarter rose 6% to USD 281.5 million from USD 266.7 million in the year-ago period. “Operating earnings were again adversely affected by higher raw material costs and a business environment that allows little pricing flexibility,” chairman and chief executive John B. Gerlach Jr. said in a release. Glassware and Candles sales totaled USD 64 million, up 14% for the quarter, and segment operating income was USD 1.1 million, USD 2.0 million below the year-ago level. However, Mr. Gerlach noted that manufacturing efficiencies at the firm“s largest glassware facility had improved.