Edition: U.S. / Global


Published: January 28, 1997

The Nabisco Holdings Corporation, the food business controlled by RJR Nabisco, reported yesterday that fourth-quarter earnings slipped more than 5 percent despite a strong rebound in its cracker and cookie business.

Nabisco Holdings, which makes Oreo cookies, Ritz crackers and other snacks, said its earnings, which totaled $110 million, or 41 cents a share, were depressed by a charge of $41 million to cover the cost of a summer retooling that trimmed its work force 8 percent. That was a drop of 5.2 percent compared with the $116 million, or 44 cents a share, the company earned in the period a year earlier.

Without the restructuring expense, which the company said would save it $200 million a year, net income in the fourth quarter would have been $151 million, or 56 cents a share, an increase of 30.2 percent. Sales for the fourth quarter were up about 6 percent, to $2.48 billion.

The report was in line with analysts' expectations, and shares of Nabisco were down 25 cents, at $38.75, on the New York Stock Exchange.

The company, based in Parsippany, N.J., credited strong fourth-quarter domestic sales in the Nabisco Biscuit Company unit, renewed momentum in core products like Oreo, Ritz and Chips Ahoy and the success of the new Air Crisp line.

They were partly offset by continued softness in the line that includes Snackwell's.

Net income for the year was $17 million, or 6 cents a share, compared with $295 million, or $1.13 a share, for the previous year. Sales rose 7 percent, to $8.89 billion.

Table: Qtr to Dec. 31 1996 1995 %Ch Sales 2,483,000,000 2,350,000,000 +5.7 Net inc. b110,000,000 116,000,000 -5.2 Sh. earn .41 .44 Sh. out. 267,770,000 265,644,000 Yr sales 8,889,000,000 8,294,000,000 +7.2 Net inc. c17,000,000 d295,000,000 -94.2 Sh. earn .06 1.13 Sh. out. 267,016,000 261,717,000 b-Included charge of $41 million, or 15 cents a share, for restructuring implementation expenses. Before the charge, income was $151 million, or 56 cents a share. c-Included charges of $57 million, or 21 cents a share, for restructuring implementation expenses, and $300 million, or $1.13 a share, for June restructuring expense. Before the charges, income was $374 million, or $1.40 a share. d-Included an extraordinary net loss of $19 million, or 7 cents a share, on early extinguishment of debt. Yesterday's closing price: $38.75 Down 25