Suiza Up 6.5% in Second Quarter

Dairy Foods, Oct, 2001

DALLAS-Suiza Foods Corp. announced recently that net sales totaled $1.5 billion for the quarter ended June 30, 2001, an increase of 6.5% over the second quarter of 2000. Diluted earnings per share before non-recurring items for the quarter totaled $1.11, an increase of 4.7% from $1.06 in the second quarter of 2000.

"Our operating units delivered another quarter of strong results despite a very challenging raw material environment," said Gregg Engles, Chairman and CEO of Suiza Foods. "Butterfat averaged $2.10 per pound, up 63% over last year, and raw milk costs increased 25% to $14.21 per hundred weight. This is clearly one of the most difficult operating environments we have experienced, and in light of these conditions, our performance is a real tribute to the strength of our management team."

During the second quarter, Suiza recorded a one-time pretax gain of $3.6 million related to the curtailment of certain benefit plans. This gain had a $1.4 million impact net of taxes and minority interest, equal to $0.03 per diluted share.