Despite aggressive cost increases, primarily in raw products, due to increased demand for alternative fuels and challenging fishing conditions, Del Monte saw a 5% rise in net sales compared to 2Q of fiscal 2007.
Del Monte Foods (DLM) said that inflationary pressures detracted from revenue growth and pushed the company's earnings lower during the second quarter. The company is lowering its full-year earnings outlook in response to rising costs.
Del Monte reported a Q1 net income of $3.5 million, compared to $6.2 million last year. However, there was a 12 percent increase in sales from new products and acquisitions.