A relatively warm fall and early summer, combined with a still-thawing economy, will result in lower-than anticipated fourth-quarter earnings for TreeHouse Foods Inc., according to officials from the Oak Brook, IL-based food processor. The company announced Jan.20 that it expects fourth quarter earnings of between 84 and 87 cents per share, well below analyst expectations of $1.07 per share.

The company's fourth-quarter retail channel volume decreased 4 percent, according to a press release, mainly due to an 8 percent decline in December, which officials described as “well below historical levels.” TreeHouse offerings include such cold-weather foods as hot cereals, non-dairy creamers and soups. It also markets foodservice products and refrigerated salad dressings.

TreeHouse officials believe the volume decline was driven by three main factors: a reduction in consumer food purchases; a sales shift away from traditional grocery customers toward alternate channel retailers; and the negative effect of warm weather in the Midwest and Northeast on seasonal sales.

"All of us at TreeHouse remain firmly committed to generating long-term shareholder value," says Sam K. Reed, chairman, president and CEO in the press release. "The marketplace continues to validate our strategy of organic growth and accretive acquisitions in private label foods, where customer brands offer consumers unequaled value, quality and convenience. Our strong balance sheet and cash flow allow us to pursue strategic expansion of our portfolio through acquisitions. Our business model of growth categories, product innovation and operational synergies provides us with a sustainable strategic advantage."

While disappointed in the company’s finish to 2011, Reed says in the press release that 2012 already is starting off strong.

"Having struggled throughout 2011, we believe that we will overcome this setback and resume steady growth in the year ahead,” Reed says. “To this end, we are off to a promising start at mid-month with retail grocery private label shipments and orders up approaching double digits over January of last year."