Ceramic Industry

Lancaster Colony Reports Increased Fiscal Results

August 31, 2010

Lancaster Colony Corp. has reported results for the fiscal year and fourth quarter ended June 30, 2010. Net sales increased 0.5% to $1,057 million, compared to $1,051 million in 2009. Net income totaled a record $115.0 million or $4.07 per diluted share; prior year net income totaled $89.1 million, or $3.17 per diluted share.

Results for the fourth quarter included net sales of $248 million, compared to $253 million in the previous year's quarter, a decrease of 2%. Glassware and Candles sales increased 15% to $30.7 million, primarily due to higher candle sales to the mass market. The segment’s quarterly operating loss improved to less than $0.1 million, compared to $0.9 million a year ago. The benefits from higher sales and greater production volumes were mitigated by higher input costs, especially for paraffin wax. Fourth quarter 2010 net income totaled $22.8 million, or $0.81 per diluted share, vs. the year ago net income of $28.4 million, or $1.01 per diluted share.

“For the year, we achieved record operating income and net income, with meaningful bottom-line improvement in both operating segments," said John B. Gerlach, Jr., chairman and CEO. “We begin the new year with well-positioned food brands, balance sheet flexibility and future growth potential from new product development and greater geographic penetration….We believe that sales growth is achievable in fiscal 2011, but our earnings optimism is tempered by economic hurdles faced by consumers, planned expansion of marketing activities, rising paraffin wax costs and potentially higher food commodity and packaging costs. Our unwavering focus on efficiently providing consumer-pleasing products and strong customer service should help yield continued strong shareholder returns.”

For more information, call (614) 224-7141.