Weider 4Q, FY01 Affected by Soft U.S. and International Markets

Weider 4Q, FY01 Affected by Soft U.S. and International Markets

SALT LAKE CITY--Weider Nutrition International Inc.(NYSE:WNI) reported on Aug. 28 a decrease in sales for fourth quarter (4Q) and the fiscal year (FY01), both ended on May 31, due to continued softness in the nutritional supplements category, as well as difficulty in international sales. The company posted a 5.5-percent decrease in 4Q net sales, bringing in $91.5 million compared to $96.9 million in the same period last year. Gross margin held relatively steady at around 37 percent of sales, and operating expenses went down several notches to $29.9 million in 2001 compared to $34.2 million for the same quarter last year. Net loss improved for the quarter, with the company posting a 4Q01 loss of $.8 million (or $.03 per share lost) compared to a $1.1 million loss (or $.04 per share lost) the comparative quarter last year.

For the year, Weider posted a 3.3 percent decrease in sales, having pulled $352.8 million for FY01 compared to $364.7 million in FY00. Gross margin did not vary much, being 38.5 percent of sales in FY01 compared to 37.6 percent in FY00, and operating expenses went down slightly to $123.5 million in FY01. Net income remained in the black, with Weider reporting earnings of $.2 million, down 80.3 percent from its $1.1 million FY00 earnings. "Although we expect continued challenges in revenue growth in fiscal 2002, we anticipate that our new products will gain traction throughout the year and our cost reduction programs will continue to generate operating efficiencies," concluded Bruce Wood, chief executive officer and president of Weider.