Diamond Foods’ profits rise over decline in expenses

Northern, WI 03/12/2013 (avauncer) - Diamond Foods Inc. (NASDAQ:DMND), a branded food packaging company, announced second quarter earnings report. The company registered profit in the second quarter as the operating expenses fell but its net sales dropped, according to this report.

The company’s stock was down 2.4 percent and trading at $17.18 after hours, because the adjusted earnings and revenue could not meet analysts’ expectations. Its shares have fallen 27 percent in the last one year.

The San Francisco-based company touched an all-time best figure of $96.13 in September last year as that time the company was moving toward finalizing an acquisition deal of $2.35 billion with Procter & Gamble Co. (NYSE:PG) to buy Pringles, potato chips like snack food, which could have made the company one of the biggest players in terms of revenue in the snack foods segment. But the shares soon began tumbling after questions were raised over company’s accounting methods.

The food major came with a restated quarterly earnings report attached to walnut-accounting scam and said that it suffered a loss during the first three consecutive quarters in 2012 on account of hefty charges spent on investigation.

Diamond Foods, the maker of Pop Secret popcorn, Kettle chips and Emerald snack nuts, clarified that it has already closed the chapter on walnut-accounting scam, and said the company had to face new challenges in form of procuring extra walnuts to meet growing demand and other issues staring at its business.

Diamond Foods CEO Brian J. Driscoll expressed satisfaction over the second quarter results and said the company’s key initiatives had borne results and driven margin expansion leading to a sustainable growth during the period.

Diamond Foods Inc. (NASDAQ:DMND) shares were down by 9.77%, trading at $15.89.

Procter & Gamble Co. (NYSE:PG) stock was down by 0.34%, trading at $77.09.