Flowers Q4 and year-end results - Flowers Industries Inc - Brief Article - Statistical Data Included

Eurofood, Feb 13, 2001

Flowers Industries, the US-based food concern, and majority stakeholder in Keebler, has reported its Q4 and year-end results. Keebler agreed to sell its interest in Keebler, the cookie and cracker manufacturer back in October 2000.

Sales at Flowers for the fourth quarter were US $1.06bn ([euro]1.14bn), an increase of 4.8% compared to the same trading period a year ago when the firm turned over some US$1.01bn. Net income in the quarter stood at US$10.28m. For the year as a whole, Flowers said sales for fiscal 2000 were US$4.8bn, up 3.3% from US$4.24bn in 1999. Net income for the year was US$45.53m, compared to US$7.29m last year. Flowers Bakery recorded higher sales but a lower operating income. Sales increased 5.7%, but operating income fell by 6.1%.

Chairman of the board, Amos R. McMullian said, "Higher operating costs severely impacted on Flowers Bakeries' results for the year, especially in the fourth quarter."

LOSS AT MRS SMITH

Another of Flowers' baking businesses, Mrs Smith Bakeries reported external sales for 2000 of US$603.75m, a slight decrease of 0.5% on last year's US$606.54%. Losses at Mrs Smith for the year were US$28.03m compared to US$53.26m. Keebler's performance for the year and quarter can be seen in the article on Keebler, (see Eurofood, this page).

SPIN-OFF NEW COMPANY

Following the agreement to sell Keebler to compatriot cereal maker Kellogg, Flowers announced in October that it would spin off and create a new company comprising Flowers Bakery and Mrs Smith Bakeries. The new firm will be called Flowers Foods. McMullian said, "We are looking forward to the culmination of the Keebler transaction. After the transaction, our focus will be on operating Flowers Foods' business units and creating long-term value for our shareholders."