Del Monte Foods reports 1.9% dip on Q2 sales

Del Monte Foods today reported net sales for the second quarter fiscal 2011 of $940.9 million compared to $958.9 million last year, a decrease of 1.9%.

Operating income was $148.0 million compared to $140.6 million last year, an increase of 5.3%.

Income from continuing operations was $81.1 million compared to $62.6 million last year, an increase of 29.6%.

Earnings per share from continuing operations (EPS) was $0.41 compared to $0.31 EPS last year.

Net sales for the second quarter fiscal 2011 declined 1.9% as consumer products decreased 5.4% and pet products increased 2.6%.

Overall unit volume declines negatively impacted the topline by 1.1% (driven by consumer products, primarily in tomato and vegetable).

Net sales were also negatively impacted by the South American sales primarily due to the devaluation of the Venezuelan currency in January 2010.

Positively contributing to net sales was the impact of new products across the portfolio which contributed 1.3%.