Hormel lowers quarter, full-year guidance
August 10, 2007
by FoodBusinessNews.net Staff
AUSTIN, MINN. — Hormel Food Corp. said it expects its third-quarter earnings to be in the range of 40c to 42c per share, which is down from the previous range of 42c to 48c per share.
"Higher-than-expected input costs (beef, pork, chicken) within our Grocery Products segment was the primary reason for the short-fall in our third-quarter results," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. "While we implemented a price increase in our Grocery Products segment at the beginning of the quarter, it was not enough to offset the higher input costs. We still expect the Grocery Products segment results to be comparable to last year and all of the other segments to meet expectations."
The company also announced a fourth-quarter guidance range of 62c to 68c per share and full-year guidance to be between $2.05 and $2.13 per share. The full-year guidance is down from the previously stated guidance of $2.12 to $2.22.