Del Monte Suffers Loss Due To Higher Costs

Del Monte (NYSE:DLM) reported a first quarter loss totaling $10.1 million, largely due to higher costs. In the year ago period, Del Monte had made 2 cents per share in profit, or $3.5 million.

Sales were up for the period to a total of $726.2 million from $626.8 million last year.

The company said it is on track for full year top-line growth of 6 to 8%. Shares in the company are relatively unmoved on the earnings report.

"I am pleased with the company's quarterly topline performance driven by strong volume, primarily in consumer products, as well as effective pricing actions and successful new product sales," said Richard G. Wolford, CEO and chairman of Del Monte Foods. "However, our businesses continue to be negatively impacted by inflationary costs pressures which further accelerated during the first quarter.