EXHIBIT 99.1
Tootsie Roll Industries, Inc.
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Press Release
STOCK TRADED: NYSE FOR IMMEDIATE RELEASE
TICKER SYMBOL: TR WEDNESDAY, July 24, 2019
CHICAGO, ILLINOIS - July 24, 2019 - Ellen R. Gordon, Chairman,
Tootsie Roll Industries, Inc. reported second quarter and first
half 2019 net sales and net earnings.
Second quarter 2018 net sales were $106,021,000 compared to $105,623,000
in second quarter 2019, an increase of $398,000. Second quarter 2019
net earnings were $11,556,000 compared to $10,489,000 in second quarter
2018, and net earnings per share were $.18 and $.16 in second quarter
2019 and 2018, respectively, an increase of $.02 or 12%.
First half 2019 net sales were $207,040,000 compared to $206,482,000
in first half 2018, an increase of $558,000. First half 2019 net earnings
were $20,511,000 compared to $18,614,000 in first half 2018, and net
earnings per share were $.31 and $.28 in first half 2019 and 2018,
respectively, an increase of $.03 per share or 11%.
Mrs. Gordon said, "Second quarter and first half 2019 net sales include
increases in domestic sales of approximately 2% and 1%, respectively.
Lower foreign sales adversely affected reported consolidated sales in
both second quarter and first half 2019 compared to the corresponding
periods in 2018. Foreign sales were unfavorably impacted by the timing
of certain sales in the comparative periods as well as a stronger U.S.
dollar and the related translation of foreign sales.
Second quarter and first half 2019 net earnings benefited from higher
price realization which allowed the Company to recover some product
margin decline resulting from increasing input costs. Less favorable
foreign exchange adversely affected results in both second quarter
and first half 2019 compared to the prior year corresponding periods,
however, decreases in legal and professional fees contributed to the
improved results in second quarter and first half 2019.
The Company is continuing its investments in its plant manufacturing
operations to meet new consumer and customer demands, achieve quality
improvements, and increase operational efficiencies. Plant efficiencies
driven by capital investments and ongoing cost containment programs
contributed to the improved results discussed above. The prior year
2018 results were adversely affected by the implementation and start-up
of new manufacturing packaging lines and resulting operational
inefficiencies as well as unfavorable experience from Company
self-insurance programs.
The Company's effective income tax rate was 25.8% and 23.7% in second
quarter 2019 and 2018, respectively, and 25.2% and 22.9% in first half
2019 and 2018, respectively. These higher tax rates in 2019 principally
reflect higher state and foreign income tax expense, including the effects
of certain international tax provisions relating to U.S. tax reform
legislation that became effective at the beginning of 2018. Earnings per
share benefited from stock purchases in the open market resulting in
fewer shares outstanding in both second quarter and first half 2019."
TOOTSIE ROLL INDUSTRIES, INC.
CONSOLIDATED SUMMARY OF SALES & EARNINGS
FOR THE PERIODS ENDED
JUNE 30, 2019 & 2018
SECOND QUARTER ENDED
2019 2018
Net Product Sales $ 106,021,000 $ 105,623,000
Net Earnings $ 11,556,000 $ 10,489,000
Net Earnings Per Share * $ .18 $ .16
Average Shares Outstanding * 65,559,000 66,104,000
SIX MONTHS ENDED
2019 2018
Net Product Sales $ 207,040,000 $ 206,482,000
Net Earnings $ 20,511,000 $ 18,614,000
Net Earnings Per Share * $ .31 $ .28
Average Shares Outstanding * 65,722,000 66,232,000
*Based on average shares outstanding adjusted for 3% stock dividends
distributed April 05, 2019 and April 06, 2018.