1/31/00 3:35:19 PM PM Local News in Brief An update from Inquirer staff and wire reports. Compiled by Terry Bitman.

Life still not sweet for Hershey Foods Hershey Foods Corp. today reported an earnings drop of more than $11 million, or 6 cents a share, for the fourth quarter of last year compared to the same period the previous last year, mostly because of sluggish sales stemming from distribution problems.

The nations largest candymaker earned $98 million, or 70 cents per share, for the quarter ending Dec. 31, down from $109.9 million, or 76 cents per share, from the same period a year ago.

Hershey said last month that its earnings would be lower than anticipated because of a December slowdown in customer orders related to continuing troubles with a new automated ordering and distribution system.

The results released Monday surpassed analysts lowered expectations of about 68 cents a share, according to First Call/Thomson Financial.

The numbers were actually pretty much as expected, said William Leach, an analyst with Donaldson, Lufkin & Jenrette. Theyre rounding the corner. Their sales seem to be improving. I think the worst is over.

The maker of Hersheys chocolates, Reeses Peanut Butter Cups, Twizzlers and other candies has been trying to recover after delays with the $112 million system  designed in part to avoid Year 2000 computer problems  hampered delivery to retailers over the summer.

Andrew Lazar, an analyst with Lehman Brothers, said Hersheys challenge in the coming months will be rebuilding customer relations after the distribution problems last year.

http://inquirer.philly.com/briefs/#703

-- Martin Thompson (mthom1927@aol.com), January 31, 2000