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Ralcorp Lowers Earnings Projections, Partially Blames PL Costs

July 14, 2011
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Ralcorp Holdings is lowering its earnings projections for its fiscal year ending Sept. 30 partly because of rising costs for raw materials used in its private label business, the St. Louis-based company said Thursday, July 14.
The company changed its projections for adjusted diluted earnings per share for the year, excluding special items, to between $5.20 and $5.35 a share, down from a previously projected $5.45 to $5.55 per share.


Ralcorp Holdings is lowering its earnings projections for its fiscal year ending Sept. 30 partly because of rising costs for raw materials used in its private label business, the St. Louis-based company said Thursday, July 14.
The company changed its projections for adjusted diluted earnings per share for the year, excluding special items, to between $5.20 and $5.35 a share, down from a previously projected $5.45 to $5.55 per share.

“The primary factors causing the decline from prior guidance, include: a lag in pricing realization versus changes in the cost of primary raw materials in the private brand businesses, lower than expected volume in the branded cereals segment and an increased number of diluted shares outstanding, as well as increased expense on certain share based compensation,” the company said in a statement released at the same time it announced it plans to spin off its Post Foods unit to shareholders.

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