UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
To Section 13 or 15(d) of the
Securities Exchange Act of 1934
February 12, 2009
Date of report (Date of earliest event reported)
TOOTSIE ROLL INDUSTRIES, INC.
(Exact Name of Registrant as Specified in Its charter)
Virginia
(State or Other Jurisdiction of Incorporation)
001-01361
(Commission File Number)
22-1318955
(I.R.S. Employer Identification No.)
7401 South Cicero Avenue, Chicago, Illinois 60629
(Address of Principal Executive Offices) (Zip Code)
773-838-3400
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[__] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[__] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[__] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[__] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On February 12, 2009, Tootsie Roll Industries, Inc. issued a press release
(the "release") announcing its results of operations and financial condition for
the fourth quarter ended December 31, 2008. A copy of the release is attached
hereto as Exhibit 99.1 and incorporated herein by reference.
The information in the release and in this Item 2.02 is "furnished" and not
"filed" for purposes of Section 18 of the Securities and Exchange Act of 1934,
or otherwise subject to the liabilities of that section. Such information may
only be incorporated by reference in another filing under the Securities
Exchange Act of 1934 or the Securities Act of 1933 only if and to the extent
such subsequent filing specifically references such information.
Item 9.01. Financial Statements and Exhibits.
(c) The following exhibit is furnished with this report:
Exhibit 99.1 Press Release of Tootsie Roll Industries, Inc., dated
February 12, 2009.
SIGNATURE
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
under-signed thereunto duly authorized.
February 12, 2009 TOOTSIE ROLL INDUSTRIES, INC.
By: /S/G. HOWARD EMBER, JR.
G. Howard Ember, Jr.
Vice President Finance and
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release of Tootsie Roll Industries, Inc., dated February 12, 2009.
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, February 12, 2009
CHICAGO, ILLINOIS - February 12, 2009 - Melvin J. Gordon, Chairman,
Tootsie Roll Industries, Inc. reported fourth quarter and twelve
months 2008 net sales and earnings.
Fourth quarter 2008 net sales were $115,432,000 compared to $115,010,000 in
fourth quarter 2007, an increase of $422,000. Fourth quarter 2008 net earnings
were $5,363,000 compared to $8,156,000 in fourth quarter 2007, and earnings per
share were $.10 and $.15 in fourth quarter 2008 and 2007, respectively, a
decrease of $.05 per share. The fourth quarter 2008 period was adversely
affected by a $3,300,000 after-tax charge relating to the write-down to market
value of an investment security that was initially purchased with a AAA rating
and insured, which the Company has concluded is now impaired. Fourth quarter
results however benefited from $2,200,000 of favorable adjustments relating to
state and foreign income taxes.
Twelve months 2008 sales were $492,051,000 compared to $492,742,000 in twelve
months 2007, a decrease of $691,000. Twelve months 2008 net earnings were
$38,777,000 compared to $51,625,000 in twelve months 2007, and earnings per
share were $.70 and $.91 in twelve months 2008 and 2007, respectively, a
decrease of $.21 per share. The twelve month 2008 results were also affected by
the impairment of the investment security and favorable income tax adjustments
discussed above.
Mr. Gordon said, "Fourth quarter and twelve months 2008 domestic sales
increased by 4% and 1/2%, respectively, however, the reported consolidated net
sales reflect declines in sales outside of the U.S., including the effects of a
stronger U.S. dollar, which offset these domestic sales increases. Fourth
quarter 2008 earnings were adversely affected by higher input costs relating to
major ingredients, freight and delivery; and twelve months 2008 results were
adversely impacted by these same higher input costs as well as those relating
to packaging materials and products manufactured in Canada due to less
favorable foreign exchange rates. The Company's per share earnings for the
fourth quarter and twelve months 2008 periods did benefit from common stock
purchases in the open market in 2008 and 2007 resulting in fewer shares
outstanding.
The Company has taken actions and implemented programs, including selected
price increases as well as cost reduction programs, with the objective to
recover some of these higher input costs. However, these actions did not allow
the Company to recover all of the increases in ingredient and other input costs
in the fourth quarter and twelve months 2008 periods."
TOOTSIE ROLL INDUSTRIES, INC.
CONSOLIDATED SUMMARY OF NET PRODUCT SALES & NET EARNINGS
FOR THE PERIODS ENDED
DECEMBER 31, 2008 & 2007
FOURTH QUARTER ENDED
2008 2007
Net Product Sales $115,432,000 $115,010,000
Net Earnings $ 5,363,000 $ 8,156,000
Net Earnings Per Share $ .10 $ .15
* Average Shares Outstanding 54,968,000 56,215,000
TWELVE MONTHS ENDED
2008 2007
Net Product Sales $492,051,000 $492,742,000
Net Earnings $ 38,777,000 $ 51,625,000
Net Earnings Per Share $ .70 $ .91
* Average Shares Outstanding 55,157,000 56,585,000
* Based on average shares outstanding adjusted for 3% stock dividends
distributed April 10, 2008 and April 12, 2007.