Seneca Foods Corporation announced their financial results for the fourth quarter and year ended March 31, 2019.
Highlights (vs. year-ago, year-to-date results):
- Net sales increased 3.2% to $1,199.6 million.
- Gross margin percentage from continuing operations decreased from 7.0% to 3.3% as compared to the prior year twelve months. Cost increases and a $40.5 million LIFO charge all contributed to the lower gross margin percentage.
- The Company has applied discontinued operations treatment as related to its Modesto operations.
- Net earnings from discontinued operations increased by $60.8 million as compared to the prior year. Included in the year ended March 31, 2019 discontinued operations earnings was a $24.2 million pre-tax non-cash gain as result of the Modesto LIFO layer liquidation and a pre-tax cash gain of $56.4 million on the sale of the Modesto plant and equipment.
“Fiscal year 2019 was challenging for a variety of reasons. We exited some unprofitable business operations and cut future costs with strategic plant rationalization. The operating loss from continuing operations of $38.1 million included a non-cash pre-tax LIFO charge of $40.5 million. We were able to offset these losses with gains primarily from the sale of assets. We are looking forward to an improved year ahead,” stated Kraig Kayser, President and Chief Executive Officer.
Highlights (vs. year-ago, fourth quarter results):
- Net sales increased 9.8% to $262.6 million.
- Gross margin percentage from continuing operations decreased from 7.1% to 5.3% as compared to the prior fourth quarter. Cost increases contributed to the lower gross margin percentage.
- Net earnings from discontinued operations increased by $14.6 million as compared to the prior fourth quarter.
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