Willamette Valley Vineyards reports net income plunged 81.2% to $103,459, or 2 cents a share, in the second quarter. Sales fell just 0.5% to $5.8 million, a result, the company said of its Oregon and Washington distributor experiencing problems in their new order/delivery systems. This resulted in a significant reduction in Oregon and Washington sales and deliveries during the second quarter 2019.
While the distributor may have had problems, to real cause of the lower earnings was a roughly $200,000 increase in cost of sales and a roughly $350,000 increase in selling and general and administrative expenses.