Lower glass production, higher costs hurt Lancaster results

Lancaster Colony Corp. which makes products including salad dressing, candles and potpourri, said Thursday fiscal third-quarter profit fell 36 percent amid rising commodity costs.

Profit for the quarter ended March 31 fell 36 percent to $8.6 million, or 30 cents per share, from $13.5 million, or 43 cents per share last year.

Revenue rose 2 percent to $270.3 million from $265.7 million last year. Columbus, Ohio-based Lancaster sold and closed glass manufacturing operations over the past year, which hurt revenue, the company said.

Specialty food sales grew 11 percent to $197 million, helped partly by higher selling prices, which offset higher commodity costs. Automotive sales grew 6 percent to $39.5 million, but glassware and candles sales fell 33 percent to $33.6 million.

The company raised prices again recently which should help fourth-quarter results, the company said. However, they expect weak candle and automotive sales during the quarter.

Shares fell $2.91, or 7.6 percent to $35.28 during morning trading. The stock has traded between $32.72 and $44.62 during the past 52 weeks.