Jun. 16, 2008 | Earnings Reports
Seneca Foods Corporation reported net sales for the fiscal year ended March 31, 2008 of $ 1,080,724,000 versus $1,024,853,000 for the prior year. The current year's net earnings were $8,019,000 or $0.65 per diluted share, compared with $32,067,000 or $2.63 per diluted share, last year. These results reflect the Company's decision to implement the LIFO (last-in, first-out) inventory valuation method effective December 30, 2007 (fourth quarter). The effect of this change was to reduce annual pre-tax earnings by $28,165,000 and net earnings by $18,307,000 million or $1 .50 per share ($1.49 diluted) below that which would have been reported using the Company's previous inventory method. The Company believes that in this period of significant inflation, the use of the LIFO method better matches current costs with current revenues. This change also results in cash savings of $9,858,000 by reducing the Company 's income taxes, based on statutory rates. If the Company had remained on the FIFO (first-in, first-out) inventory valuation method, the pre-tax results, less non-operating gains and losses, would have been an all time record of $42,644,000, up from $40,009,000 in the prior year.