Newspaper article THE JOURNAL RECORD

Wilson Foods Has Third Straight Profitable Quarter / of $839,000

Newspaper article THE JOURNAL RECORD

Wilson Foods Has Third Straight Profitable Quarter / of $839,000

Article excerpt

Net income of $839,000, or 12 cents per share, was reported Thursday for the first fiscal quarter ended Nov. 1 by Wilson Foods Corp. of Oklahoma City.

Wilson had a net loss of $24 million, or $4 per share, in the first quarter of the previous fiscal year. It was the third consecutive profitable quarter for Wilson.

First quarter sales were $361.9 million, down 2.2 percent from $370.2 million in the first quarter of the previous fiscal year.

"We are pleased that this is the third straight quarter that we have been able to report operating profits and net income," said Kenneth J. Griggy, chairman of the board and chief executive officer. "For the last three quarters we have achieved operating income of $3 million, compared to operating losses of $13.4 million for the same period a year earlier."

This quarter's results include an extraordinary gain of $341,000 from the use of net operating loss carryforwards from previous periods to offset federal income taxes otherwise due for the quarter. The results for the comparable quarter last year included an unusual charge of $21.4 million, consisting primarily of costs associated with the company's restructuring announced in the fall of 1985.

In the first quarter of this year, the company had operating income of $858,000, an improvement of $3.5 million over the comparable period last year when the company had an operating loss of $2.6 million. Operating income is before income taxenine months. For the third quarter ended May 3, 1986 Wilson it earned $330,000 and again reported a profit of $3.5 million in the fourth quarter ended Aug. 2, 1986.

However, Griggy said, the results of the current quarter were somewhat below expectations because of an unexpected surge in raw material costs which led to high retail prices and reduced consumer demand.

"The sudden rise appears to be a temporary phenomenon," Griggy told shareholders Thursday at the company's annual meeting.

He said raw material costs have already settled back to levels more consistent projections.

The company has increased its net worth by over 42 percent, Griggy said.

"We are operating profitably in the current quarter and we remain optimistic about prospects for the entire year.

"We are exploring capital infusion alternatives, including an equity offering," he said.

Restructuring of the company's operations from a market-driven, pork producer to a processor of value-added pork products was completed in May 1985 with the closing of the Monmouth, Ill., and Cherokee, Iowa slaughter operations. …

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