PARSIPPANY, N.J. (AP) — Pinnacle Foods Inc. said Wednesday its second-quarter loss widened on hefty charges related to its initial public offering and other items, but its adjusted profit beat Wall Street predictions and it boosted its full-year profit prediction.
The maker of Birds Eye frozen foods, Duncan Hines frosting and cake mixes and Vlasic pickles posted a loss of $31.8 million, or 28 cents per share, for the three months ended June 30. That compared with a loss of $10.6 million, or 13 cents per share, in the same quarter of 2012.
Excluding IPO and debt restructuring charges, along with other one-time items, the company said its adjusted profit was 29 cents per share for the recent quarter. Analysts, on average, expected a profit of 27 cents per share, according to FactSet.
Revenue dropped 3 percent to $569 million from $588.6 million, short of the $574.6 million analysts expected.
Pinnacle attributed the revenue drop to its planned exits from less profitable unbranded businesses at it specialty foods division, along with the shift of the Easter holiday to earlier in the year. Sales at the specialty foods division fell 12 percent to $86.2 million.
Sales at the company's North America retail division, which includes its Birds Eye Frozen and Duncan Hines Grocery segments, fell just under 2 percent to $482.9 million.
Pinnacle also said that it expects its planned $580 million acquisition of Wish-Bone salad dressings, which was announced on Monday, to boost its full-year earnings by 1-to-2 cents per share. As a result, the company boosted its full profit guidance to a range of $1.53 to $1.57 per share, from its previous range of $1.49 to $1.55 per share.
The new guidance also takes into account changes to Pinnacle's number of outstanding shares. Analysts expect $1.53 per share, a figure that has not changed in recent weeks and likely does not include the addition of Wish-Bone.
Shares of Parsippany, N.J.-based Pinnacle fell 30 cents to $25.92 in morning trading. The stock has traded between $22.15 and $26.95 in the past 52 weeks, and is up about 7 percent since the start of the year.