Del Monte results hit by rising costs

Del Monte Foods has seen its reported income from continuing operations drop by around 26 percent for the fiscal year ended 1st May 2005. The company reported income of $118.6 million, compared to $160.7 million in 2004. One of the factors for the decline were increased costs, notably in steel and energy, logistics and other transportation-related areas. On a comparable basis, net sales for the year increased by 3.6 percent to $3.13 billion. The company has said that it plans to reduce its product portfolio by 20 percent over the next two years and to concentrate on 'star' brands. It also intends to save $100 million in operational efficiencies and organisational costs over the next three years.