Northland Cranberries, Inc., a US manufacturer of cranberry juice and related products, this week reported a loss in fourth quarter earnings.
For the three-month period ended August 31, 2001, Northland reported a net loss of $70.9 million, or $13.95 per share, on net revenues of $31.4 million. During the comparable quarter last year, the company lost $79.8 million, or $15.70 per share, on net revenues of $34.0 million.
For the year ended August 31, 2001, the company recorded a net loss of $74.5 million, or $14.65 per share, on net revenues of $125.8 million. This compares to fiscal 2000 year-end loss of $105.0 million, or $20.65 per share, on net revenues of $207.0 million.
The significant net losses for the fiscal 2001 periods included an inventory lower of cost or market adjustment of $17.6 million and a writedown of long-lived assets and assets held for sale in the amount of $80.1 million.
Operational factors contributing to the charges included the continuation of depressed cranberry prices resulting from an industry-wide surplus of fruit, heavy price and promotional discounting by major competitors and a previous lack of sufficient working capital to adequately promote the company's products.
John Swendrowski, Northland's chairman and chief executive officer commented, "Heavy price and promotional discounting by Ocean Spray and other competitors resulted in lost distribution and decreased market share of our products in various markets. For the 12-week period ended September 9, 2001, industry data indicated Northland brand 100% juice products had a 6.0% market share of the supermarket shelf-stable cranberry beverage category, compared to a 10.9% market share for the same period last year."
Northland is a vertically integrated grower, handler, processor and marketer of cranberries and cranberry products.