Sara Lee Corp. (NYSE:SLE) posted a small loss for its fiscal Q3 on Thursday, as the packaged food company wrote down one-time costs associated to the intended spinoff of its coffee and tea business.
The maker of Hillshire Farm, Jimmy Dean and Ball Park products stated that its revised income dropped 34%. That fell short of Wall Street forecasts.
Sara Lee intends to split into two units: the international coffee and tea firm and a meats firm. Both will be public firms. CEO Jan Bennink stated the firm is on track to complete the spinoff by June 30.
The firm, headquarters in Downers Grove, Ill., posted a net loss of $2 million, which was breakeven on a per share basis, against a profit of $156 million, or 25 cents a share, a year before.
Its revised net income dropped to $123 million, or 21 cents a share, lower from $185 million, or 30 cents a share, a year before. Analysts polled by FactSet projected revised earnings of 25 cents a share.
Overall net sales increased to $1.9 billion against $1.86 billion, as pricing increases masked flat to lower volume. But operating income declined to $193 million, against $237 million, owing in part to costs in its coffee and tea section associated to the spinoff.
Shares of Sara Lee dropped 12 cents to $22.20 in midday trading after touching a 52-week high of $22.35 on Tuesday. They are almost 40% higher than their low for the previous year of $15.66 per share in early October.
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