wsj_0189.xml

WSJ 891102 891102 -0001 WSJ 891102 -0001 = 891102
= 891102
891102-0001 . 891102-0001 . Ralston Profit @ Declined 47 % @ In 4th Quarter 4th Quarter @ --- @ By Richard Gibson @ Staff Reporter of The Wall Street Journal Ralston Profit @ Declined 47 % @ In 4th Quarter @ --- @ By Richard Gibson @ Staff Reporter of The Wall Street Journal 11/02/89 11/02/89
11/02/89
WALL STREET JOURNAL ( J ) WALL STREET JOURNAL ( J ) RAL RAL EARNINGS ( ERN ) FOOD PRODUCTS ( FOD ) EARNINGS ( ERN ) FOOD PRODUCTS ( FOD ) Ralston Purina Co. reported a 47 % decline in fourth-quarter earnings , reflecting restructuring costs as well as a more difficult pet food market . The St. Louis company earned $ 45.2 million , or 65 cents a share , compared with $ 84.9 million , or $ 1.24 a share , a year earlier . Sales in the latest period were $ 1.76 billion , a 13 % increase from last year 's $ 1.55 billion . For the year ended Sept. 30 , Ralston earned $ 422.5 million , or $ 6.44 a share , up 8.9 % from $ 387.8 million , or $ 5.63 a share . This year 's results included a gain of $ 70.2 million on the disposal of seafood operations . Sales for the full year were $ 6.6 billion , up 13 % from $ 5.8 billion . Ralston said its restructuring costs include the phase-out of a battery facility in Greenville , N.C. , the recent closing of a Hostess cake bakery in Cincinnati and a reduction in staff throughout the company . The battery plant , which makes rechargeable nickel cadmium and carbon zinc products , will be closed over the next year or so , a spokesman said . Ralston attributed its fourth-quarter slump partly to higher costs of ingredients in the pet food business as well as competitive pressures , which required higher advertising spending . For the year , pet food volume was flat , the company said . Its cereal division realized higher operating profit on volume increases , but also spent more on promotion . The Continental Baking business benefited from higher margins on bread and on increased cake sales , it added . Ralston said its Eveready battery unit was hurt by continuing economic problems in South America . Ralston shares closed yesterday at $ 80.50 , off $ 1 , in New York Stock Exchange composite trading .