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Diamond Hill Capital Comments on Flowers Foods
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Processed and packaged foods manufacturer Flowers Foods, Inc. (FLO) reported a second quarter relatively in-line with analyst expectations. Input costs, however, continued to be an issue with the summer drought negatively impacting wheat costs. Flowers Foods produced consistent double digit earnings gains during much of the last decade but has seen relatively flat earnings the past two years. We expect earnings growth will be restored in 2013.
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