Del Monte Foods Profit Improves

NEW YORK - Dec 2/04 - SNS -- Del Monte Foods Company reported a net profit of U.S. $41.6 million on sales of $846.6 million during the second quarter ending October 31, up from a net profit of $40.2 million on sales of $791.6 million during the previous fiscal year.

This lifted the company's fiscal year to date profits to $50.1 million on sales of $1,103.4 million, down from a net result of $54.5 million on sales of $1,037.2 million during the same six-month period last year.

In releasing its latest quarterly statement, the company said it expects "fiscal 2005 sales growth of approximately 2% to 3% over fiscal 2004 net sales of $3,129.9 million and diluted earnings per share from continuing operations of $0.76 to $0.81, including integration expense of approximately $0.06 per share.

"This compares to $0.76 of diluted earnings per share from continuing operations in fiscal 2004, which included integration expense of $0.13 per share. The Company previously said it expected fiscal 2005 sales growth of 1% to 2% over fiscal 2004 and diluted earnings per share from continuing operations of approximately $0.81 to $0.86, including integration expense of approximately $0.06 per share."

Del Monte Foods Company - Selected Financial Results

Net Sales by Segment
(In millions)
                        Three Months Ended        Six Months Ended
                      October 31, October 26,  October 31, October 26,
                         2004        2003         2004        2003
                      ----------- -----------  ----------- -----------
Consumer Products         $629.1      $599.4     $1,076.1    $1,048.4
Pet Products               217.5       192.2        396.5       354.5
                      ----------- -----------  ----------- -----------
      Total Company       $846.6      $791.6     $1,472.6    $1,402.9
                      =========== ===========  =========== ===========

Operating Income by Segment
(In millions)
                        Three Months Ended        Six Months Ended
                      October 31, October 26,  October 31, October 26,
                         2004        2003         2004        2003
                      ----------- -----------  ----------- -----------
Consumer Products          $73.8       $67.1       $109.1       $98.6
Pet Products                31.5        33.7         48.3        60.7
Corporate                  (11.6)       (9.3)       (23.2)      (16.3)
                      ----------- -----------  ----------- -----------
   Total Company           $93.7       $91.5       $134.2      $143.0
                      =========== ===========  =========== ===========

Selected Balance Sheet Data
(In millions)
                                              October 31,
                                                  2004     May 2, 2004
                                              -----------  -----------
Cash and cash equivalents                          $10.8        $36.3
Trade accounts receivable, net of allowance        240.9        222.3
Inventories                                      1,172.2        823.5
Total assets                                     3,766.3      3,459.7
Accounts payable and accrued expenses              542.3        427.2
Short-term borrowings                              142.0          0.8
Long-term debt, including current portion        1,372.1      1,375.8
Stockholders' equity                             1,188.8      1,128.9



Selected Cash Flow Data
(In millions)
                                                  Six Months Ended
                                              October 31,  October 26,
                                                  2004         2003
                                              -----------  -----------
Net cash used in operating activities            $(138.2)     $(115.3)
Net cash used in investing activities              (32.8)       (42.7)
                                              -----------  -----------
    Total                                         (171.0)      (158.0)
Net cash provided by financing activities          143.9        125.5

Depreciation and amortization                       45.3         43.0

                        DEL MONTE FOODS COMPANY
              Condensed Consolidated Statements of Income
            (In millions, except share and per share data)

                        Three Months Ended        Six Months Ended
                      -----------------------  -----------------------
                      October 31, October 26,  October 31, October 26,
                         2004        2003         2004        2003
                      ----------- -----------  ----------- -----------
Net Sales                 $846.6      $791.6     $1,472.6    $1,402.9
Cost of products sold      624.2       580.6      1,103.4     1,037.2
                      ----------- -----------  ----------- -----------
   Gross profit            222.4       211.0        369.2       365.7
Selling, general and
 administrative expense    128.7       119.5        235.0       222.7
                      ----------- -----------  ----------- -----------
   Operating income         93.7        91.5        134.2       143.0
Interest expense            25.9        30.9         50.5        60.9
Other income (expense)      (0.5)        2.4         (2.5)        1.6
                      ----------- -----------  ----------- -----------
   Income from
    continuing
    operations before
    income taxes            67.3        63.0         81.2        83.7
Provision for income
 taxes                      25.5        22.3         30.8        29.5
                      ----------- -----------  ----------- -----------
   Income from
    continuing
    operations              41.8        40.7         50.4        54.2
   Income (loss) from
    discontinued
    operations before
    income taxes            (0.6)       (0.3)        (0.7)        1.5
     Provision (benefit)
      for income taxes      (0.4)        0.2         (0.4)        1.2
                      ----------- -----------  ----------- -----------
   Income (loss) from
    discontinued
    operations              (0.2)       (0.5)        (0.3)        0.3
                      ----------- -----------  ----------- -----------
Net income                 $41.6       $40.2        $50.1       $54.5
                      =========== ===========  =========== ===========

Earnings per common share

Basic:
  Basic Average
   Shares           210,216,329  209,458,920  210,015,490  209,412,640
  EPS - Continuing
   Operations             $0.20        $0.19        $0.24        $0.26
  EPS - Discontinued
   Operations               -            -            -            -
  EPS - Total             $0.20        $0.19        $0.24        $0.26

Diluted:
  Diluted Average
   Shares           212,066,245  210,630,911  211,893,409  210,541,998
  EPS - Continuing
   Operations             $0.20        $0.19        $0.24        $0.26
  EPS - Discontinued
   Operations               -            -            -            -
  EPS - Total             $0.20        $0.19        $0.24        $0.26