Farmer Bros. Profits Drop

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Farmer Bros. Co. on Friday reported net income of $2.9 million (21 cents per share), a 29 percent drop from $4.1 (30 cents) for the same period a year earlier.


The company said the steep drop was mainly due to a bump in selling expenses, which increased 4 percent due to costs of coffee brewing equipment.


Sales for the Torrance coffee company increased 1 percent to $55.4 million.


“We continued to see steady progress for our long-term efforts to hold down our operating costs as we invest in programs to grow sales,” said Chief Executive Guenter Berger. “Our efforts to promote our brand and reacquaint our customers with the full scope of our product offerings are showing early signs of success.”


The company also said it is in the midst of rolling out new packaging and expects to continue for the rest of 2007. Farmer Bros. also anticipates opening up two new locations in Cincinnati and Shreveport, La., before the end of the year.


Shares in Farmer Bros. were up 1.5 percent (32 cents) to $31.28 in midday trading Friday.

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