US: Mondavi income falls in Q2
The California-based winemaker The Robert Mondavi Corporation has announced second quarter net income of US$9.4m, or $0.57 per diluted share, compared to net income of US$9.7m, or $0.59 per diluted share, a year ago.
However, the company said that included in the quarter's result is an after-tax asset impairment charge of US$3.9m, or $0.23 per diluted share, related to the anticipated sale of the Caliterra brand and assets to Viña Errázuriz, the company's joint venture partner in Chile.
Included in last year's quarterly results was an after-tax asset impairment charge of US$2.0m, or $0.12 per diluted share, related to the sale of a vineyard.
Net revenues for the quarter increased by 4% from the same period last year to US$147.3m, reflecting a 3% increase in shipment volume and positive mix from strong sales of Robert Mondavi Winery, Robert Mondavi Private Selection and new brands.
"Excluding the asset impairment charges in each year, we saw a 12.7% improvement in earnings per share, and reasonable top line growth. The retail marketplace remains very competitive as many producers continue to work through excess supply," said Gregory M. Evans, president and CEO.
"Now, more than ever, we remain committed to investing in our core businesses, delivering new products to market and actively reducing costs."
Evans added: "As these marketplace conditions persist into the second half of our fiscal year, our earnings guidance remains unchanged, except for the Caliterra charge taken during the quarter."
The company said it expects second half earnings to be skewed towards the fourth quarter. Third quarter earnings per share are expected to be in the range of US$0.01 to US$0.05.
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