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Lamb Weston President expects growth in french fry demand ‘to continue in foreseeable future’

Image result for lamb weston logoLamb Weston Holdings, Inc. announced today its second quarter 2018 results and updated its outlook for fiscal 2018. “Our second quarter and first half results were solid,” said Tom Werner, President and CEO. “Our commercial teams have worked through customer contract negotiations, and now that those discussions are largely behind us, we’re focused on our ongoing commitment to deliver industry-leading service, drive innovation and service limited time offerings with our customers.” Lamb Weston, the frozen-potato company that emerged from Conagra Brands in 2016, said Thursday that fiscal second-quarter income from operations rose 11 percent. The supplier of frozen french fries to McDonald’s and many other restaurants said income from operations was $140 million. Sales rose 4 percent to $825 million for the company based in Idaho. 

According to Werner, “We expect growth in demand to continue not just through fiscal 2018, but also for the foreseeable future. To support this growth, we recently announced an additional 300 million pound french fry production line expansion in Hermiston, Oregon, to be operational in the fourth quarter of fiscal 2019. This new capacity will support our customers’ growth in North America as well as Asia, where demand growth has been, and is projected to remain, strong. In addition to funding this $250 million investment, we expect to generate sufficient earnings and cash flow to support the recent increase in our dividend, as well as provide flexibility to take advantage of future potential growth opportunities. By continuing to take a balanced, returns-driven approach when deploying capital, we remain confident in our ability to support our customers and create value for our shareholders over the long term.”

Full press release