Sliding Prices Cited in Mondavi’s Loss

Wine maker Robert Mondavi Corp. on Thursday reported a fiscal third-quarter loss as a grape glut and intense competition from imports depressed sales and prices for some of its brands.

The Oakville, Calif.-based maker of Woodbridge and Robert Mondavi Private Selection lost $1.6 million, or 10 cents a share, for the quarter ended March 31, contrasted with net income of $7.6 million, or 46 cents, a year earlier.

Revenue fell 12% to $92.2 million from the same period last year.

The results were in line with the company’s revised forecast in March.

The company said then that it was laying off 10% of its workforce, centralizing its marketing efforts and selling non-strategic assets.

“The market remains difficult and industry pricing competitive,” said Chairman Michael Mondavi during a conference call with investors, noting a further slide in wine prices during the quarter, including a 3% decline for Woodbridge.

The company also said it may take $10 million in charges in the fourth quarter related to the restructuring, which executives said is almost complete.

Despite the bleak news, and a warning of additional charges it could take next year related to assets not on the books, Mondavi shares rose $1.05 on Thursday to close at $22.81 on Nasdaq.

Analysts said the uptick suggests that some investors think the California wine market has “hit bottom,” as prices for some less-expensive grapes have started to rise.