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Seneca Foods reports improved earnings
Seneca Foods reports improved earnings
Seneca Foods Corp. on Friday reported a decline in sales but increase in income in the second quarter.
For the second quarter ended Sept. 29, the Marion, Wayne County manufacturer reported sales of $320.66 million, down $7 million from the prior year quarter. Earnings for the quarter improved to $9.12 million from a $1.1 million loss last year. On a per-share basis, Seneca Foods reported earnings of 92 cents, compared with an 11-cent loss in the same quarter last year.
Excluding earnings from discontinued operations, Seneca Foods reported a 58 cent loss in the quarter.
“As we anticipated, we have sold the Modesto facility subsequent to the quarter end and are in the process of completing the orderly liquidation of the Modesto operations,” Seneca President and CEO Kraig Kayser said in a statement. “We are expecting a third quarter pre-tax gain on the sale of the Modesto facility of approximately $53.9 million.”
Kayser said continuing operations results are lagging last year due to higher steel and transportation costs.
The fruit and vegetable packager has struggled this year with some of its canning facilities. Its Modesto closure, announced in February, was due to challenging economic conditions. The facility, which employed 265 people, was used for packaging and warehousing of Seneca Foods’ peach and fruit cocktail products.
In June the company confirmed plans to shutter its Marion canning facility, affecting 45 jobs.
The company’s stock (Nasdaq: SENEA) has ranged from $31.35 per share to $34.25 at closing Friday.
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