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Suiza issues 3Q warning
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September 15, 1998: 8:16 a.m. ET
Rise in butterfat prices greases the skids under food processor's earnings
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NEW YORK (CNNfn) - Suiza Foods Corp. said Tuesday it expects third-quarter earnings to fall well short of Wall Street estimates.
The Dallas-based dairy processing and consumer goods packaging company said it expects third-quarter earnings in the range of 75 cents to 78 cents a share. First Call estimates forecast a profit of 83 cents a share for the quarter.
Suiza cited "unprecedented increases" in butterfat prices for the lowered forecast.
Suiza posted a profit of 52 cents a share in the year-ago period.
The company also said its board of directors has authorized a stock buyback plan of up to $100 million.
"Although we continue to have opportunities to utilize our capital for acquisitions on an opportunistic basis, we also believe, given current market conditions, that the repurchase of our stock is a compelling alternative," said Gregg Engles, Suiza chairman and chief executive officer.
Suiza (SZA) shares fell 11/16 to close at 39-3/4 in Monday trading. 
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