Lamb Weston Holdings, Inc. (NYSE:LW) shares stayed just above breakeven Wednesday, on the release of first-fiscal-quarter figures.
The company, based in Eagle, Idaho, reported net sales increased 8% to $989 million. Income from operations increased 11% to $170 million. EBITDA including unconsolidated joint ventures increased 9% to $233 million.
Volume increased 6%, primarily driven by growth in the Company’s Global segment, and includes an approximate one percentage point benefit from acquisitions. Price/mix increased 2% due to pricing actions and favorable mix.
Income from operations rose 11% to $170.0 million versus the year-ago period, driven by higher sales and gross profit. Gross profit increased $18.0 million due to favorable price/mix and volume growth.
Diluted EPS increased 8% to $0.79 from $0.73, while the company returned $34 million of cash to shareholders
Said CEO Tom Werner, "We’re pleased with our solid start to our fiscal year, with each of our core business segments driving volume, price/mix and earnings growth
"We continue to leverage our sales and innovation capabilities to support customers’ growth, as well as to support pricing actions and improve product mix. We’re making good progress on our new ERP system, while also continuing to integrate our recent acquisitions in Australia.
"And our new Hermiston, Oregon french fry line is fully operational, providing us with flexibility to service and upgrade other production lines that have been operating at peak capacity.”
LW shares gained seven cents to $73.64
