Olson Farms Posts Loss of $1.1 Million in Quarter

Olson Farms, hurt by continuing low egg prices, reported a loss and reduced sales for its second quarter ended June 30.

Sales for the quarter were $28.2 million, down 27% from the same period last year. The loss for the quarter was $1.1 million, or $1.08 per share, contrasted with profit of $436,000, or 40 cents per share, for the same period last year

For the first six months of the year, sales were down 31% to $58.4 million. The Sherman Oaks-based company reported a net loss for the period of $1.2 million, or $1.11 per share, contrasted with a profit for the corresponding period last year of $1.9 million, or $1.80 per share.

Prices were higher last year because many egg producers around the country had lower production and fewer eggs were available to retailers, according to J. W. Buffington, chairman and president. He said egg prices are beginning to go back up.

Olson Farms is one of the nation’s largest independent producers and distributors of eggs and egg products. It is also in the plastic- packaging business, making cartons for eggs and fast food. Olson employs 1,200 workers overall, including 60 at the Sherman Oaks corporate headquarters.

The company has been torn by a battle between its founders, C. Dean Olson and H. Glenn Olson, over a plan to sell 30% of Olson Farms to Southwest Overthrust Oil & Gas, an affiliate of Anaheim-based Winn Enterprises.

A $7.2-million tentative agreement was called off last month because Southwest said it wanted more time to consider the deal. Buffington said Olson Farms has not spoken with Southwest recently, and that no talks are scheduled in the near future.