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Lamb Weston (LW) Tops Q2 EPS by 1c

January 4, 2018 8:33 AM EST

Lamb Weston (NYSE: LW) reported Q2 EPS of $0.54, $0.01 better than the analyst estimate of $0.53. Revenue for the quarter came in at $825 million versus the consensus estimate of $815.29 million.

"Our second quarter and first half results were solid,” said Tom Werner, President and CEO. “Our commercial teams have worked through customer contract negotiations, and now that those discussions are largely behind us, we’re focused on our ongoing commitment to deliver industry-leading service, drive innovation and service limited time offerings with our customers. Our supply chain teams continued to focus on managing cost and capacity utilization, as well as successfully starting-up our new 300 million pound french fry production line in Richland, Washington. In addition, with this year’s potato crop fully harvested, we consider it to be consistent overall with historical averages, and that storability will also likely be consistent with planned expectations. With our solid first half performance and some key milestones now behind us, we have better clarity on how we see the rest of the year unfolding, and have raised our annual outlook for sales growth and EBITDA accordingly.”

“We expect growth in demand to continue not just through fiscal 2018, but also for the foreseeable future,” Werner continued. “To support this growth, we recently announced an additional 300 million pound french fry production line expansion in Hermiston, Oregon, to be operational in the fourth quarter of fiscal 2019. This new capacity will support our customers’ growth in North America as well as Asia, where demand growth has been, and is projected to remain, strong. In addition to funding this $250 million investment, we expect to generate sufficient earnings and cash flow to support the recent increase in our dividend, as well as provide flexibility to take advantage of future potential growth opportunities. By continuing to take a balanced, returns-driven approach when deploying capital, we remain confident in our ability to support our customers and create value for our shareholders over the long term.”


For earnings history and earnings-related data on Lamb Weston (LW) click here.



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