Seneca Foods' FY earnings down 36 percent

Seneca Foods' FY earnings down 36 percent

Why was the canned fruits and vegetables company hit?

Seneca Foods Corp. reported that net earnings for the fiscal year ended March 31, 2012 decreased 36.3 percent to $11.3 million, or $0.92 per diluted share, compared to $17.7 million, or $1.45 per diluted share, in the fiscal year ended March 31, 2011. Net sales for the fiscal year ended March 31, 2012 increased from the fiscal year ended March 31, 2011 by 5.6 percent, to $1,261.8 million. The increase is attributable to increased selling prices and improved sales mix of $133.3 million partially offset by a sales volume reduction of $66.1 million.

Net sales for the fourth quarter ended March 31, 2012 increased from the fourth quarter ended March 31, 2011 by 7.2 percent, to $271.2 million. The increase is attributable to increased selling prices and more favorable sales mix of $54.3 million and partially offset by less sales volume of $36.1 million. Net loss for the fiscal fourth quarter of 2012 was $2.2 million, or $0.18 per diluted share, compared to a net loss of $1.9 million, or $0.15 per diluted share, in the fiscal fourth quarter of 2011.

Excluding a non-cash after-tax LIFO charge of $11.3 million, net earnings per diluted share were $0.74 during the quarter ended March 31, 2012 versus a $0.20 net loss per diluted share during the quarter ended March 31, 2011, which included a non-cash LIFO credit of $0.6 million. Excluding a non-cash after-tax LIFO charge of $30.7 million, net earnings per diluted share were $3.44 during the year ended March 31, 2012 versus $1.03 per diluted share during the year ended March 31, 2011, which included a non-cash LIFO credit of $5.1 million.

During 2012, the Company recorded a gain of $0.7 million from the sale of property located in Le Sueur, Minn., and a gain of $0.1 million from the sale of other property which are included in other operating (loss) income. During 2011, there was a gain from the reversal of an environmental reserve of $0.3 million, a gain of $0.2 million from the sale of certain fixed assets and a loss of $0.4 from the disposal of certain fixed assets which are also included in other operating (loss) income.

During the second quarter of fiscal 2011, the Company implemented workforce reductions, at its plants in Buhl, Idaho, and Mayville, Wis., and certain other locations that resulted in a restructuring charge of $1.4 million primarily for severance costs.

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