Attached files
EXHIBIT 99.1
Tootsie Roll Industries, Inc.
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Press Release
STOCK TRADED: NYSE FOR IMMEDIATE RELEASE
TICKER SYMBOL: TR Wednesday, February 14, 2018
CHICAGO, ILLINOIS - February 14, 2018 - Ellen R. Gordon,
Chairman, Tootsie Roll Industries, Inc. reported fourth
quarter and twelve months 2017 net sales and net earnings.
Fourth quarter 2017 net sales were $125,179,000 compared to
$124,279,000 in fourth quarter 2016, an increase of $900,000 or 0.7%.
Fourth quarter 2017 net earnings were $31,985,000 compared to
$17,841,000 in fourth quarter 2016, and net earnings per share were
$.51 and $.28 in fourth quarter 2017 and 2016, respectively, an
increase of $.23 per share or 82%. Fourth quarter 2017 net earnings
includes a favorable deferred income tax accounting adjustment of
$20,318,000 or $.32 per share resulting from the estimated impact of
the enactment of the U.S. Tax Cuts and Jobs Act (U.S. tax reform) in
December 2017.
Twelve months 2017 net sales were $515,674,000 compared to $517,373,000
in twelve months 2016, a decrease of $1,699,000 or 0.3%. Twelve months
2017 net earnings were $80,864,000 compared to $67,510,000 in twelve
months 2016, and net earnings per share were $1.28 and $1.05 in twelve
months 2017 and 2016, respectively, an increase of $.23 per share or
22%. Twelve months 2017 net earnings also includes a favorable deferred
income tax adjustment of $20,318,000 or $.32 per share from U.S. tax
reform.
Mrs. Gordon said, "The effects of a stronger U.S. dollar and related
currency translation of foreign sales contributed to lower sales of
approximately $2,050,000 in twelve months 2017, primarily in fourth
quarter 2017. Fourth quarter and twelve months results were adversely
affected by higher costs and expenses for ingredients, packaging
materials, manufacturing plant overhead, freight and delivery,
marketing and sales expenses relating to new product development and
packaging changes to comply with product labeling requirements, and
declines in results from foreign subsidiaries. Many of these increased
costs and expenses accelerated in fourth quarter 2017. Continuing
improvements in manufacturing plant efficiencies driven by capital
investments and ongoing cost containment programs mitigated some of
these higher costs and expenses. In addition, fourth quarter and
twelve months 2017 pre-tax results reflect a charge of $2,371,000
relating to the impairment of assets of a foreign subsidiary. The
Company's fourth quarter and twelve months 2017 net earnings per share
benefited from common stock purchases in the open market resulting in
fewer shares outstanding.
In connection with the enactment of U.S. tax reform in December 2017, the
Company recorded a net tax benefit of $20,318,000, or $.32 per share,
during the fourth quarter of 2017. This reflects the estimated accounting
adjustment from the revaluation of net deferred income tax liabilities based
on the new lower U.S corporate income tax rate effective January 1, 2018."
TOOTSIE ROLL INDUSTRIES, INC.
CONSOLIDATED SUMMARY OF SALES & EARNINGS
FOR THE PERIODS ENDED
DECEMBER 31, 2017 & 2016
FOURTH QUARTER ENDED
2017 2016
Net Product Sales $ 125,179,000 $ 124,279,000
Net Earnings $ 31,985,000 $ 17,841,000
Net Earnings Per Share * $ .51 $ .28
Average Shares Outstanding * 62,837,000 63,708,000
TWELVE MONTHS ENDED
2017 2016
Net Product Sales $ 515,674,000 $ 517,373,000
Net Earnings $ 80,864,000 $ 67,510,000
Net Earnings Per Share * $1.28 $1.05
Average Shares Outstanding * 63,179,000 64,086,000
*Based on average shares outstanding adjusted for 3% stock dividends
distributed April 17, 2017 and April 8, 2016
