Del Monte Foods Co. said Thursday that its fiscal first-quarter profit edged up 1.4 percent, but revenue softened on weakness in the consumer business and the company trimmed its expectations for revenue growth this year.
CEO Richard G. Wolford said the company expects its consumer business to improve in the second half of the year as category competition lessens. He noted in a news release margins were strong and the company is investing in key brands.
The company behind the Del Monte and College Hill brands as well as pet foods like Milk Bones and Meow Mix said its net income rose to $59.4 million, or 29 cents per share, for the three-month period ended Aug. 1 from $58.8 million, or 29 cents per share, a year ago.
Revenue fell 1.1 percent to $804.6 million from $813.7 million a year ago.
Analysts surveyed by Thomson Reuters expected the San Francisco company to earn 27 cents per share on revenue of $829.5 million.
Consumer sales fell 6 percent to $377.3 million, while pet product sales rose 3.7 percent to $427.3 million.
Del Monte now expects net sales growth of 1 percent to 3 percent this year, down from prior expectations of 2 percent to 4 percent. The company maintained its earnings per share guidance of a range of $1.38 to $1.42.
Analysts expect fiscal 2011 earnings per share of $1.41, according to Thomson.
Its shares rose 6 cents to $13.22 in morning trading Thursday.
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