Lamb Weston Holdings, Inc. reported unaudited consolidated earnings results for thirteen weeks and thirty-nine weeks ended February 25, 2018. For the thirteen weeks, the company reported net sales of $863.4 million compared to $768.5 million for the same period a year ago, up 12% versus the year-ago period. Price/mix increased 7% due to pricing actions and favorable product and customer mix. Income from operations was $169.2 million compared to $145.2 million for the same period a year ago. Income before income taxes and equity method earnings was $140.7 million compared to $118.9 million for the same period a year ago. Net income attributable to the company was $156.8 million or $1.06 per diluted earnings per share compared to $84.2 million or $0.57 per basic and diluted earnings per share for the same period a year ago. Diluted EPS increased $0.49 to $1.06 from $0.57 in the prior year period. Approximately $0.31 of the increase relates to the Tax Cuts and Jobs Act enacted in December 2017, and included a $0.16 benefit from discrete items and a $0.15 benefit related to adopting a lower tax rate. The remaining increase was driven by growth in income from operations and equity method investment earnings. Adjusted EBITDA including unconsolidated joint ventures was $237.6 million compared to $190.8 million for the same period a year ago. Adjusted income from operations increased 14% to $171 million. Adjusted diluted EPS increased to $0.91 from $0.59 in third quarter 2017, and includes a $0.15 benefit from a lower tax rate as a result of U.S. tax reform.

For the thirty-nine weeks, the company reported net sales of $2,505.5 million compared to $2,335.5 million for the same period a year ago. Income from operations was $446.6 million compared to $395.7 million for the same period a year ago. Income before income taxes and equity method earnings was $365.5 million compared to $361.2 million for the same period a year ago. Net income attributable to the company was $316.8 million or $2.14 per diluted earnings per share compared to $251.0 million or $1.70 per diluted earnings per share for the same period a year ago. Adjusted EBITDA including unconsolidated joint ventures increased 25% to $238 million. Adjusted income from operations increased 14% to $171 million. Net cash provided by operating activities was $310.2 million compared to $254.1 million for the same period a year ago. Additions to property, plant and equipment was $204.4 million compared to $204.5 million for the same period a year ago. Adjusted EBITDA including unconsolidated joint ventures was $617.9 million compared to $530.7 million for the same period a year ago. Adjusted diluted EPS was $2.01 increased 12%.

For the year 2018, the company's expected net sales to increase at upper end of mid-single digits range, up from a previous estimate of mid-single digits. Adjusted EBITDA including unconsolidated joint ventures expected to be $805 million-$810 million, up from a previous estimate of $780 million-$790 million. Interest expense expected to be approximately $110 million. Effective tax rate excluding comparability items expected to be approximately 28%. Cash used for capital expenditures expected to be $270 million-$280 million up from the company's previous estimate of $250 million.