1st-Quarter Net $214,000 for All American Gourmet
All American Gourmet Co. said it posted net income of $214,000 for its fiscal 1987 first quarter, down 84.6% from net income of $1.3 million a year earlier. Revenue for the period ended April 20 was $30.6 million, a 67% increase from $18.3 million.
Ernest W. Townsend, president and chief operating officer of the Orange-based maker of Budget Gourmet frozen entrees, said the sharp drop in first-quarter profits was caused by continuing start-up costs at All American’s new manufacturing facility in Atlanta and by the cost of price reductions for two new product lines being introduced nationally.
He said income should improve in the second quarter and predicted that sales for the current fiscal year will “be double last year’s.”