DLM Ups Quarterly Dividend By 80%, Fiscal Q4 Results Beat Expectations

Del Monte Foods Company

has raised its quarterly dividend by 80% from $0.05 to $0.09 per common share. The San Francisco, California-based company also announced the authorization of a 3-year, $350 million stock repurchase program, which indicated the company’s confidence in a higher continuing level of performance. Del Monte’s Chairman and CEO Richard G. Wolford said, "Based on Del Monte's higher level of performance and confidence in our future, we have substantially increased our quarterly dividend and authorized a significant stock repurchase program. Importantly, we are able to do this while achieving our leverage targets and continuing to invest in our business, consistent with our growth strategy. We are returning cash and incremental value to shareholders based on our strong results, the cash flow we consistently generate, and the overall strength of the Company." Del Monte had earlier reported its fiscal 2010 Q4 and full year results today. DLM’s net sales for the 13-week quarter ended May 2, 2010 fell 9.8% to $954.0 million, versus $1,057.4 million for the 14-week quarter ended May 3, 2009. The company’s quarterly income from continuing operations stood at $63.3 million, or $0.31 diluted earnings per share, below last year’s $68.8 million, or $0.35 per share. Its full year net sales grew by 3.1%. Read more