Ralcorp: Q3 profit rises on gains from investment

St. Louis / MO. (rh) Ralcorp Holdings Inc. announced results for the quarter ended June 30, 2008 and reaffirmed its forecast for the fiscal year ending September 30, 2008.

For the third quarter of fiscal 2008, reported diluted earnings per share were 1,73 USD including the impact of a non-cash gain on forward sale contracts related to Ralcorp´s investment in Vail Resorts, Inc., or 1,20 USD per share excluding that impact. In last year´s third quarter, reported diluted earnings per share were 0,43 USD including the impact of a non-cash loss on those contracts, or 1,13 USD excluding that impact. Other reported results for the quarter include:

  • Net sales for the quarter increased 13 percent as a result of both higher pricing in response to rising input costs and volume gains in most of the Company´s operating segments.
  • Total segment profit contribution was up three percent as a result of higher selling prices and volumes, partially offset by higher ingredient costs.
  • Food EBITDA was 65,3 million USD compared to 65,4 million USD last year. This period´s costs included 1,6 million USD of transition costs related to the pending merger of the Post cereals business into Ralcorp.
  • Earnings before income taxes and equity earnings were 53,5 million USD (compared to 1,9 million USD last year) after a 21,7 million USD (0,53 USD per share) non-cash gain on Ralcorp´s Vail forward sale contracts. Last year´s amount included a 29,8 million USD (0,70 USD per share) non-cash loss on those contracts.
  • Equity in earnings of Vail Resorts, Inc. (after tax) was 11,2 million USD (0,42 USD per share) compared to 10,1 million USD (0,37 USD per share) a year ago.
  • Net earnings were 45,8 million USD, which is 34,2 million USD higher than a year ago – including the non-cash after-tax effects of gains or losses on the Vail forward sale contracts (press release).
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