SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
December 19, 1994
(Date of earliest event reported)
STOKELY USA, INC.
(Exact name of registrant as specified in its charter)
Commission File No. 0-13943
Wisconsin 39-0513230
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
1055 Corporate Center Drive
Oconomowoc, Wisconsin 53066
(Address of principal executive offices) (Zip Code)
(414) 569-1800
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
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Stokely USA, Inc. issued a press release on December 19,
1994, announcing that unanticipated and significant price cuts by
competitors late in the current quarter will have a substantial
negative impact on Stokely USA, Inc.'s fiscal third quarter
results. The Company currently anticipates that its net income
for the third quarter ending December 31, 1994 will be
approximately $.10 per share, compared to last year's third
quarter net income of $.03 per share and net income of $.40 per
share for the most recent quarter ended September 30,1994.
Selling prices during the October-November time period were
relatively stable and the Company believes these selling prices
had adjusted to industry inventory position's following this
summer's processing season. Recent intra-company transactions
and inquiries for certain canned products would indicate that
overall inventories are not burdensome. However, some key
industry participants in the canned market recently have elected
to reduce prices further. While there does not appear to be a
fundamental industry inventory related basis for this action, a
situation specific need on the part of certain industry
participants to liquidate inventory early may be the cause.
Because the vegetable processing industry is extremely
competitive and price sensitive, industry participants typically
must meet lowering prices in the market or risk substantial loss
of market share. Therefore, the Company, as well as other
industry participants have responded to the new competitive
conditions resulting in a general market decline in prices for
certain canned products. The price decline will have a
significant negative impact on the Company's anticipated results
for the third quarter ending December 31, 1994. Should current
pricing persist, the Company's fourth quarter ending March 31,
1995, will also be negatively impacted. In addition, the
Company's sales volume also is experiencing a moderate decline
from expected levels in the third quarter, primarily as a result
of the Company's disciplined response to recent price declines
and a continuing delay in receiving labels from private label
customers as a result of new labeling requirements.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS.
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Not Applicable
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
STOKELY USA, INC.
Date: By:
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Stephen W. Theobald
Vice Chairman
