Keebler reports record Q4 and year-end - Keebler Co - Brief Article

Eurofood, Feb 13, 2001

US snack producer Keebler, which agreed to be acquired by compatriot cereal giant Kellogg last year, has reported Q4 and year-end results revealing a fifth consecutive record year. Fourth quarter net income was up to US$53.7m ([euro]58.2m) a 19.9% increase compared to US $44.8m from the previous year's figures. Net sales in the final quarter were up 5.4% on Q4 1999 to US$645.3m.

There was some acquisition and divestiture activity at Keebler during the year. The US concern acquired Austin Quality Foods in March 2000, which contributed US$34.4m to its Q4 sales. The sale of Keebler's value brand business to Consolidated Biscuit Company added US$8.7m to the firms' fourth quarter revenues.

Sam K. Reed, CEO at Keebler said, "Keebler achieved news sales and earnings records for the fifth consecutive year." Reed continued, "The company's strong performance gives us momentum in 2001 as Keebler combines forces with Kellogg. Keebler is confident that its powerful brands such as Keebler, Cheez-It, Carr's, [...] have and will continue this earnings growth in 2001." Keebler, the second largest cookie manufacturer in the US, recorded sales in its branded segment of US$526.2m in the fourth quarter. In its speciality segment, which includes foodservice, Q4 sales dropped slightly to US $119. 1m from US$125.1m, a drop of 4.8%.

Keebler Q4 and 2000 results (US$ 000)

                                   Q4 2000   Q4 1999      2000      1999

Operating income                    91 603    81 566   327 475   263 903
Income before income tax expense    81 679    73 889   283 364   227 729
Income tax expense                  28 001    30 261   108 387    95 646
Net income                          53 678    43 628   174 977   132 083

Source: Keebler