Ralcorp fiscal 3rd-qtr profit soars on gain

Private-label cereal maker Ralcorp Holdings Inc. said Monday its third-quarter profit soared due to a gain from the forward sale of contracts related to its investment in a resort company.

For the quarter ended June 30, net income climbed to $45.8 million, or $1.73 per share, from $11.6 million, or 43 cents per share, in the prior-year quarter.

Analysts polled by Thomson Financial expected profit of $1.21 per share.

Ralcorp was helped by a gain of $21.7 million, or 53 cents per share, on forward sale contracts from the company's investment in mountain resort company Vail Resorts Inc. In last year's third quarter, the company reported a loss of $29.8 million, or 70 cents per share, from the contracts.

Revenue jumped 13 percent to $658.6 million from $583.5 million. Analysts predicted revenue of $637.1 million.

The company said higher prices and volume gains contributed to the rise in sales. The company boosted its prices to combat higher ingredient costs _ a problem for most food makers as commodity prices have soared.

Sales in every division rose, with revenue in its largest segment _ cereals, crackers and cookies _ growing 13 percent.

Shares of Ralcorp fell 43 cents to $52.30 in morning trading.