TreeHouse Foods reports lower second quarter earnings

PRNewswire

Oakbrook-based TreeHouse Foods Inc. reported second quarter earnings of declined over last year, due to increases in freight, transportation and packaging costs.

The company reported an earning of 39 cents per share, compared to 60 cents per share reported for the second quarter of last year.  On an adjusted basis, the company reported earnings per share of 43 cents compared to 70 cents the prior year,

“Our very strong sales in the quarter were overshadowed by the negative impact of rapidly rising input and transportation costs on our gross margins.  We have aggressively pursued price increases to offset these costs, and have succeeded in achieving the pricing necessary to recover our margin shortfalls over the back half of the year,” said Sam K. Reed, TreeHouse chairman and CEO,

The company noted that the recent closing of its Springfield, Mo. plant and the integration of freight and warehouse operations into a consolidated distribution network as well as the costs associated with the integration of Sturm Foods and S.T. Specialty Foods, had a negative impact in the quarterly earnings.