AUSTIN, MINN. — Net income at Hormel Food Corp. in the second quarter ended April 29 was $68,001,000, equal to 49c per share on the common stock, up 1% compared with $67,308,000, or 49c per share, during the same quarter of the previous year.
Net sales were $1,504,597,000 during the quarter, a 10% increase compared with $1,365,345,000 during the same quarter of 2006.
For the first six months, net income was $143,326,000, or $1.04 per share, up 5% from $136,584,000, or 99c per share. Sales were $3,008,680,000, up from $2,781,278,000.
"We delivered excellent top-line results across all five of our business segments and double-digit increases in operating profit performance in four out of the five segments," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. "Our microwavable meals, led by Hormel Compleats microwavable trays, continued their exceptional growth trend, and we also enjoyed strong sales results from other key products such as Hormel chili, Hormel Natural Choice deli sandwich meats and Hormel party trays."
Mr. Ettinger said the one disappointment in the quarter was that the Jennie-O Turkey Store segment was not able to pass on higher grain costs through pricing as quickly or efficiently as desired.
In the Grocery Products segment, operating income totaled $39,194,000, up 28% from $30,615,000 in the same quarter of 2006. Net sales in the segment were $223,625,000, an 11% increase compared with $200,955,000 during the same period a year ago.
Operating income in the Refrigerated Foods segment was $44,187,000, up 23% from $35,933,000. Sales in the unit were $796,339,000, which was an 11% increase compared with $715,245,000 during the same quarter of the previous year.
The Jennie-O Turkey Store segment had operating income of $13,949,000, down 48% from $26,640,000 in the second quarter of fiscal 2006. Sales of $270,044,000 compared with $254,607,000 during the same quarter of 2006.
In the company’s Specialty Foods segment, operating income rose 33% to $16,281,000, while sales increased 8% to $169,069,000.
In the "All Other" segment, operating income totaled $4,866,000, up 16% from $4,193,000. Sales were $45,520,000, which was up 21% compared with $37,522,000 during the same quarter of the previous year.
Hormel lowered its 2007 profit guidance to $2.12 to $2.22 from $2.15 to $2.25, reflecting higher input costs for the Jennie-O Turkey Store segment.