Newspaper article THE JOURNAL RECORD

Wilson Food Posts Profitable Year , 6th Quarterly Profit in Row

Newspaper article THE JOURNAL RECORD

Wilson Food Posts Profitable Year , 6th Quarterly Profit in Row

Article excerpt

The first profitable fiscal year since 1984 and the sixth consecutive profitable quarter was reported Thursday by Wilson Foods Corp. of Oklahoma City.

For the firscal year ended Aug 1, Wilson reported net income of $5.58 million, or 67 cents per share, compared to a net loss of $23.5 million, or $3.80 per share, in the previous fiscal year. Revenues for the fiscal year totaled $1.3 billion, down 7.3 percent from $1.4 billion.

Wilson Foods reported net income of $1 million, or 10 cents per share, in the fourth quarter of the fiscal year, down 69.7 percent from $3.4 million, or 51 cents per share for the fourth quarter of the previous fiscal year. Revenues for the quarter totaled $345.9 million, down 4.5 percent from $362.08 million for the fourth quarter of the previous fiscal year.

Operating income for the fourth quarter of 1987 was $1.2 million, down 33.3 percent from $1.8 million for the fourth quarter of the previous fiscal year.

The company also reported that, based on its financial performance during 1987, it will make a lump sum payment and begin payment of a 16 cents per hour wage increase to eligible workers pursuant to the terms of the company's collective bargaining agreements with the United Food and Commercial Workers International Union, AFL-CIO.

The results for 1987 include extraordinary gains of $2.25 million, or 27 cents per share, from the use of net operating loss carryforwards from previous periods to offset federal income taxes otherwise due for the current periods. For the fourth quarter, this gain was $311,000, or 3 cents per share, according to Wilson.

The comparable annual and quarterly results for 1986 both included extraordinary gains of $960,000 from early retirement of debt, amounting to 16 cents per share for the year and 14 cents per share for the quarter. The 1986 annual results also included an unusual charge of $21.4 million consisting primarily of costs associated with the company's restructuring that year.

"We are pleased that the company was solidly profitable for the year and able to produce a modest profit in the fourth quarter, our sixth profitable quarter in a row," said Kenneth J. Griggy, chairman of the board and chief executive officer. "This is the first year of profits for the company since 1984.

"The fourth quarter, however, was a difficult period," he sad. "We experienced severe margin erosion because the cost of hogs, our basic raw material, remained unexpectedly and stubbornly high throughout the quarter and we were unable to pass on much of those increased costs in the pricing of many of our products. …

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