Lancaster Colony still assessing Kmart exposure

According to recent statements by the American company, Lancaster Colony Corp.“s accounts receivable with Kmart Corp. total about US$ 14 million.
In a press release on 23 January, Lancaster, which s…

According to recent statements by the American company, Lancaster Colony Corp.“s accounts receivable with Kmart Corp. total about US$ 14 million. In a press release on 23 January, Lancaster, which sells consumer glassware and candles to the bankrupt discount retailer, said it is still assessing the effects of its exposure. The company anticipates a related provision for loss on this receivable will be charged against its fiscal second quarter ended 31 December 2001. On a consolidated basis, Lancaster Colony“s direct sales to Kmart in the past fiscal year totalled about 4% of net sales. Lancaster also said it is one of a number of companies notified by the US Treasury Department that they will receive payments under the Continued Dumping and Subsidy Offset Act of 2000. The company will receive about US$ 15 million under this law, which redresses unfair dumping of imported products through cash payments to eligible affected companies. Lancaster said the payment relates to its candle operations, and will help it make further investments in the quality of its candle products and services. The company expects the funds to be recorded as income during the fiscal third quarter ending 31 March 2002.