Del Monte Profit Down 9%

NEW YORK - Mar 3/05 - SNS -- Del Monte Foods Company reported a net income of U.S. $48.5 million on net sales of $861.3 million for the third quarter ending January 30, down from a net of $53.5 million on sales of $811.6 million during the same period of the previous fiscal year.

This lifted fiscal year to date net income to $98.6 million on sales of $2,333.9 million, versus a net income of $108 million on sales of $2,214 million last year.

In reporting the latest quarterly results, Del Monte said net sales increased 6.2% because of higher volume from new product introductions and increased marketing support, as well as by increased pricing. Sales increased across each of Del Monte's operating segments (Del Monte Brands, StarKist Seafood, Private Label Soup and Pet Products).

Income from continuing operations decreased due to increased inflationary costs in steel and energy, logistics and other transportation-related costs, as well as due to higher fish costs. Marketing spending also increased, as Del Monte continued to invest in its brands and new products. These higher costs were partially offset by increased pricing, cost reduction actions, lower overhead expenses, higher volume and lower interest expense.

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