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Hormel Foods Earnings Down

24 February 2012, at 8:28am

US - Hormel Foods has report a drop in net earnings for the first quarter of the financial year of 14 per cent - down to $128.4 million from $148.8 million a year ago.

Diluted earnings per share for the quarter were $.48 this year compared to $.55 per share last year.

Sales reached $2.04 billion, which was up six per cent from fiscal 2011 despite being two per cent down in volume.

Grocery Products operating profit was down by nine per cent and volume was down by six per cent with dollar sales down three per cent.

Refrigerated Foods saw operating profit down 44 per cent with volume flat and dollar sales up seven per cent.

Jennie-O Turkey Store had operating profit up by four per cent with volume down seven per cent and dollar sales up four per cent and saw Specialty Foods operating profit down four per cent with volume up one per cent and dollar sales up 14 per cent.

International operating profit was up by 25 per cent with volume flat and dollar sales up 17 per cent.

“Our first quarter earnings of 48 cents per share was the second best in our Company's history, albeit down from a year ago,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.

“Sales grew six per cent, with four of our five segments registering sales gains in the quarter.”

“I was pleased with the strong results achieved by our Jennie-O Turkey Store segment, led by increased retail value-added sales. Our International business also delivered a solid quarter, fueled by strong export sales. Results of our Refrigerated Foods segment were hindered by significantly lower pork operating margins, and our Grocery Products segment results were adversely impacted by softer sales in the center of the store,” Mr Ettinger added.

“We are encouraged by continued growth of our MegaMex Foods joint venture, led by increased sales of our DON MIGUEL products and our WHOLLY GUACAMOLE line. Our Foodservice group also achieved solid sales growth during the quarter,” said Mr Ettinger.