(If only we had bought stock BEFORE the buying rush)

Del Monte Foods Q2 net rises due to Y2K, cost cuts

SAN FRANCISCO, Calif., Jan 27 (Reuters) - Del Monte Foods Co., the No. 1 U.S. canned vegetables and fruit producer, said on Thursday Y2K-related stockpiling and cost cutting fueled a solid increase in its fiscal second-quarter earnings.

The San Francisco, Calif.-based maker of canned tomato and pineapple products said pro forma net income for the quarter rose to $21.4 million, or 40 cents per share, up 67 percent from $12.8 million or 24 cents per share for the year-earlier quarter.

Second-quarter revenues rose 6.5 percent to $455.4 million from $427.7 million in the year-earlier quarter.

Pro forma results for fiscal 1999 were adjusted for the acquisition of the company's South American business as if the event had occurred on the first day of fiscal 1999, and for the completion of the Feb. 1999 initial public offering.

Analysts were on average forecasting 36 cents per share, according to First Call/Thomson Financial estimates. Shares of Del Monte were down 13 cents at $9.19 in mid-morning trade on the New York Stock Exchange.

The company said pro forma net income increased in the quarter due to overall higher volumes, an improved product mix and a lower cost of products sold as a result of cost reductions and sales of some lower margin businesses.

The company had previously announced that sales for the quarter would be unusually high due to the year 2000 millennium scare. It said it had about $15 million in net sales related to Y2K stockpiling and it should have a corresponding decrease for the third fiscal quarter ending March 31.

The company's pro forma net income for the six months of fiscal 2000 was $28.5 million, or 53 cents a share, compared with $15.4 million or 29 cents a share.

Source: Reuters

http://www.pbs.org/reuters/articles/Y2K2/01_27_2000.reulb-story-bcfooddelmonteearns.html

-- Lee Maloney (leemaloney@hotmail.com), January 31, 2000

Answers

Response to California - San Fran - Del Monte Foods Co net sales up 40%, Y2k (etc)

The Reuters link is not working. Try this Yahoo Url for the identical article:

http://biz.yahoo.com/rf /000127/bfp.html

-- Lee Maloney (leemaloney@hotmail.com), January 31, 2000.

Response to California - San Fran - Del Monte Foods Co net sales up 40%, Y2k (etc)

Correction.... Subject line should read:

California - San Fran - Del Monte Foods Q2 net rises: Y2K, cost cuts

Thanks, Sysop

-- Lee Maloney (leemaloney@hotmail.com), January 31, 2000.