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Hormel Pleased with Second Quarter Results

by 5m Editor
21 May 2010, at 10:53am

US - Hormel Foods Corporation has reported its performance for the fiscal year 2010 second quarter, revealing excellent results.

The operating profit for refrigerated foods was up seven per cent, the volume remained flat, and dollar sales rose six per cent.

The operating profit for Hormel's Jennie-O Turkey Store went up 93 per cent from last year, while the volume went down three per cent and dollar sales went up one per cent.

The operating profit for Hormel's Specialty Foods segment was up 39 per cent. The volume also rose at 8 per cent and dollar sales were up one per cent.

All other operating profits went down 18 per cent, and volume remained flat while dollar sales rose up seven per cent.

Diluted adjusted EPS of $0.67 was up 14 per cent from $0.59 per share in 2009 and the adjusted segment operating profit up 18 percent from last year.

Dollar sales of $1.7 billion were up seven per cent from last year, and total volume was also up two per cent. Grocery Products adjusted operating profit was down two per cent while volume was up 10 per centand dollar sales also went up six per cent.

Jeffrey M. Ettinger, chairman of the board, president and chief executive officer, commented: “We are pleased to report excellent earnings and sales for the quarter, which were up 14 per cent and 7 per cent, respectively. This quarter demonstrated the value of our balanced model, as our Jennie-O Turkey Store and Specialty Foods segments more than made up for the more difficult quarter experienced by our Grocery Products segment due to increased raw material costs. We are also gratified to see our sales grow in all five of our segments.

“Our Jennie-O Turkey Store segment had an outstanding quarter, showing strength across the board. Our Specialty Foods segment also enjoyed a strong quarter, aided by strong sales of nutritional products, sugar substitutes and private label canned meats. Our Refrigerated Foods segment had improved results, primarily resulting from strong cutout margins, and our International segment had weaker results.

“We were pleased with the progress made with our new product lines under our MegaMex Foods venture and our Country Crock® side dish acquisition, as both product lines contributed to our results this quarter,” continued Mr Ettinger.

“Excluding the 10 cent per share impact of the one-time charges relating to the closing of the Valley Fresh plant and the reduced value of the deferred tax asset resulting from the new health care laws, Hormel is raising its full year guidance range from $2.68 to $2.78 per share to $2.75 to $2.85 per share.

“We anticipate continued higher hog costs during the remainder of the year, and we recognize the strong investment performance in our rabbi trust last year will result in a more difficult comparison in the back half of the year. However, we believe our strong brands and our dedicated team will allow us to overcome those obstacles,” concluded Mr Ettinger.