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Losses eat up Nabisco 2Q
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July 22, 1998: 9:22 a.m. ET
Weak biscuit business results in lower operating profit; charges cause big loss
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NEW YORK (CNNfn) - Citing continuing weakness in the domestic biscuit business and international operations, Nabisco Holdings Corp. reported second-quarter net income Wednesday slightly below Wall Street estimates before restructuring charges that resulted in huge losses.
The snack giant reported operating income of $72 million, or 27 cents a share, on $2.13 billion in sales. Those results came in slightly below First Call estimates, which forecast a profit of 28 cents a share.
Including $412 million in restructuring charges, which will result in the elimination of about 3,100 jobs, Nabisco reported a net loss of $200 million, or 76 cents a share, for the quarter.
A year earlier, earnings totaled $102 million, or 38 cents a share, on $2.19 billion revenue.
"As anticipated, our results were disappointing with earnings significantly below last year's second quarter," said James M. Kilts, president and chief executive officer of Nabisco. "The excellent performance of several core brands was more than offset by ongoing areas of weakness."
For the first half of 1998, Nabisco said its operating income fell 23 percent to $127 million, or 48 cents a share, from $166 million, or 62 cents a share, a year earlier.
Including the restructuring charge, Nabisco reported a $145 million loss, or 55 cents a share, for the first half of 1998.
Nabisco makes such well-known brands as Oreo cookies, Planter's nuts and Grey Poupon mustard.
Nabisco (NA) shares fell 3/8 to close at 38-3/4 in Tuesday trading. 
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Nabisco
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