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2Q loss for snack giant Snyder's-Lance Inc.
[August 10, 2011]

2Q loss for snack giant Snyder's-Lance Inc.


Aug 10, 2011 (The Charlotte Observer - McClatchy-Tribune Information Services via COMTEX) -- Charlotte snack maker Snyder's-Lance Inc. expressed disappointment Tuesday over slumping profits in its second full quarter as a merged company.



Lance Inc., the Charlotte-based maker of crackers and cookies, joined pretzel giant Snyder's of Hanover Inc. in December to form the second-largest U.S. salty-snack company, behind Frito-Lay.

In the quarter ending July 2, Snyder's-Lance posted a net income loss of $3.84 million, compared with a $12.4 million profit for Lance Inc. a year earlier. Net revenues were $413 million, up 75 percent.


Excluding special charges, net income for the quarter was $11.1 million, or 16 cents per diluted share, compared to $14.5 million or 44 cents per share same time last year.

Price increases for private brand products become effective in the third quarter to make up for rising commodity costs, the company said.

"Although our second quarter profitability was disappointing, our company remains strong and on track to complete the merger which created Snyder's-Lance," CEO David V. Singer said.

The merged company uses Lance's Charlotte offices as its corporate headquarters, with an additional headquarters in Snyder's hometown of Hanover, Pa. Products are sold under brand names including Snyder's of Hanover, Lance, Cape Grand, Archway, O-Ke-Doke and Stella D'oro.

The number of employees in the U.S. and Canada jumped to about 7,000 in February, up from 4,800 the previous year, due to the merger, according to the company. Exact figures on the number employed in Charlotte were not available.

The company also announced it has acquired George Greer Company, Inc. , a New England snack food distributor, for undisclosed terms. The move strengthens the company's distribution network by adding 120 routes, company officials said.

To see more of The Charlotte Observer, or to subscribe to the newspaper, go to http://www.charlotteobserver.com. Copyright (c) 2011, The Charlotte Observer, N.C. Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com.

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