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Treehouse reports increase in earnings
Tuesday, November 03, 2009

TreeHouse Foods Inc. said strong sales of private-label products helped drive an increase in third-quarter net income and should help produce stronger annual results than earlier expected.

The Westchester, Illinois, company that makes soup and baby food in the former Heinz plant on the North Side reported net income of $28.1 million in the three months ended Sept. 30 vs. $11.1 million in the same period last year.

Earnings per share on a reported basis were 85 cents compared to 35 cents last year but, after excluding the impact of one-time events, TreeHouse reported earnings of 54 cents per share vs. 41 cents last year. Analysts polled by Thomson Financial had been looking for an average of 50 cents per share.

Net sales of $378.9 million for the quarter compared to $374.6 million last year.

TreeHouse said sales in its North American retail grocery segment, which includes soup and baby food products, rose 7.7 percent to $238.9 million. Strength in salad dressing, salsa and pickles offset a decline in the infant feeding category, the company reported.

As a result of improved profit margins, the company raised its full year earnings guidance from a range of $2.02 to $2.07 in adjusted earnings per share to a range of $2.07 to $2.09. Analysts had been looking for $2.06.

Teresa F. Lindeman can be reached at tlindeman@post-gazette.com or at 412-263-2018.
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First published on November 3, 2009 at 5:13 pm