Dreyer’s to Delay Earnings Because of Weak Controls
Dreyer’s Grand Ice Cream Holdings Inc., which controls about a quarter of the U.S. ice cream market, said Friday that it would delay reporting its financial results after finding a material weakness in its controls.
A review of results for its fiscal third quarter, which ended Sept. 24, showed a failure to maintain effective control over valuation and determination of deferred income-tax assets and provisions, Oakland-based Dreyer’s said in a Securities and Exchange Commission filing.
Dreyer’s has had 12 consecutive quarterly losses, including a loss of $26.2 million on $467.6 million in sales in the second quarter.
The company has been unable to raise ice cream prices enough to cover higher dairy costs.
Dreyer’s had a tax benefit of $10.2 million in the second quarter and a tax-deferred asset valued at $5.64 million as of June 25.
Dreyer’s stock fell 5 cents to $82.40.
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