Del Monte Foods Co. said Thursday that its fiscal first-quarter profit fell 62% and warned that the current quarter's profit would fall as low as 5 cents a share because of costs to integrate acquisitions.
San Francisco-based Del Monte said net income in the quarter ended July 30 fell to $6.2 million, or 3 cents a share, from $16.2 million, or 8 cents, a year earlier. Revenue rose 9.3% to $674.1 million.
Del Monte said costs related to the purchase of pet food brands Meow Mix and Milk-Bone earlier this year would cut 7 cents a share from profit from continuing operations in the period. Revenue on the same basis is forecast to rise 15% to 18%.
The company has been making acquisitions and streamlining operations in a bid to increase revenue and become more efficient.
Del Monte said it planned to focus on improving customer service and supply chain manufacturing to reduce costs and inventory levels.