Lance Inc. 4Q profit rises 47 percent, 2009 net income doubles as ingredient costs fall

Lance Inc. 4th-quarter profit rises 47 percent

CHARLOTTE, N.C. — Snack foods maker Lance Inc. said Wednesday its fourth-quarter profit rose 47 percent and finished its fiscal year strong after seeing ingredient prices tumble in 2009.

The seller of Cape Cod potato chips and private-label snacks earned $11 million, or 34 cents per share, in the three months that ended Dec. 26. That is up from $7.5 million, or 24 cents per share, a year earlier.

Analysts had expected earnings per share of 38 cents on revenue of $229.2 million, according to Thomson Reuters.

Revenue rose 7.3 percent to $231.1 million, from $215.3 million last year.

The Charlotte, N.C., company said for the full year it earned $35.8 million, or $1.11 a share, up from $17.7 million, or 56 cents a share, in 2008. The company said the costs to produce its food tumbled in 2008, which helped improve profits.

Revenue rose 7.7 percent to $918.2 million, from $852.5 million. Sales of private label brands made up nearly one-third of the company’s revenue, rising 15 percent from the previous year. More shoppers are seeking out private label as a way to save money in the recession.

For fiscal 2010, Lance said it estimates revenue will grow between 5 percent and 7.5 percent, and its earnings per share will rise between 25 percent and 35 percent.

Lance declared a quarterly cash dividend of 16 cents a share payable March 1 to shareholders of record Feb. 22.

Shares of Lance fell 72 cents, or 3.2 percent, to $22.15 in afternoon trading Wednesday.