Farmer Brothers Loses Less

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Farmer Brothers Co. said Tuesday that its quarterly net loss fell as its late February acquisition of Sara Lee Corp.? direct-store delivery business began contributing to revenue.

The Torrance wholesaler of coffee and spices reported a fiscal third quarter net loss of $1.44 million (-10 cents per share) for the quarter ended March 31, compared with a loss of $2.71 million (-19 cents) a year ago. Net sales rose 21 percent to $85.6 million.

The results include $14.4 million revenue in March from the new direct-store delivery business. Excluding that, unit sales were up 0.2 percent. Selling, general and administrative expenses rose 40 percent, reflecting the increased costs from managing the new business, plus overall higher freight costs.

“We are encouraged that our unit volumes have remained steady despite the economic slowdown,?Chief Executive Rocky Laverty said in a statement.

Farmer Brothers shares were down 43 cents, or 2 percent, to $21.95 in midday trading on the Nasdaq.

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