Del Monte Profit Up 90%

NEW YORK - Sep 1/05 - SNS -- Del Monte Foods Company reported a net income of U.S. $16.2 million on sales of $671.1 million during the first quarter ending July 31, compared to a net of $8.5 million on sales of $626 million during the opening quarter of the previous fiscal year.

The company said its year-over-year first quarter earnings increase was driven by the positive impact of higher pricing. Lower integration expense, reduced interest expense, lower commodity costs and new and existing product volume growth also positively impacted earnings. Increased inflationary costs in steel, energy, logistics and other transportation-related costs, higher overhead expense and higher fish costs partially offset the positive earnings.

First quarter net sales increased 7.2% from the prior year period to $671.1 million. The increase in net sales was driven primarily by increased pricing across the businesses and volume growth from existing and new products partially offset by volume loss associated with price increases (elasticity). Sales increased across each of Del Monte Foods' operating segments.

For the first quarter, Consumer Products net sales were $476.7 million, an increase of 6.6% over the prior year period. The increase was driven primarily by the same factors that impacted the Company as a whole, including increased pricing and volume growth from existing and new products across all operating segments. Partially offsetting the net sales increase were declines in volume associated with price increases in Del Monte Brands and with a change in tuna strategy in StarKist Seafood.

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