Ralcorp’s fiscal 3rd-quarter profit slips on acquisition costs, lower revenue

Ralcorp posts lower fiscal 3Q profit, revenue

ST. LOUIS — Cereal maker Ralcorp Holdings Inc. said Monday that its fiscal third-quarter profit declined due to acquisition expenses and lower revenue.

For the three months ended June 30, the company earned $53 million, or 95 cents per share, down 29 percent from $74.8 million, or $1.31 per share, in the same period a year earlier.

Excluding special items such as acquisition expenses, the company earned $1.11 per share in the latest quarter.

Revenue fell 3 percent to $962.4 million from $994 million.

Analysts, on average, expected profit of $1.01 per share on revenue of $977.4 million, according to a poll by Thomson Reuters.

Ralcorp said sales of its Post-branded cereal products declined 8 percent to $242.7 million due to lower selling prices because of product promotions.

The acquisition expenses totaling $12.8 million were related to Ralcorp’s purchases of J.T. Bakeries Inc., North American Baking Ltd., Sepp’s Gourmet Foods Ltd. and its pending buyout of American Italian Pasta Co.

Shares fell $1.92, or 3.5 percent, to $52.51 in after-hours trading. The stock earlier closed up 2 cents at $54.43.