Hershey income doubles in quarter
October 16, 2008
by FoodBusinessNews.net Staff
HERSHEY, PA. — For the third quarter ended Sept. 28, The Hershey Co. had a net income of $124,538,000, equal to 56c per share on the common stock, up 100% from $62,784,000, or 28c per share, during the same quarter of the previous year.
Sales for the quarter were $1,489,609,000, up 6% from $1,399,469,000 during the same quarter of the previous year.
"Third-quarter results were in line with our expectations and reflect higher commodity costs resulting from the execution of hedging strategies announced in August and implemented within the quarter," said David J. West, president and chief executive officer. "These added costs offset the benefit of higher revenue generated by the buy-in related to the August price increase. Additionally, we continued to increase core brand support in the U.S. and within key international markets. In the U.S., advertising and consumer brand-building investment increased by about 25% in the quarter."
For the nine months net income was $229,250,000, or $1.03 per share, up 43% from $159,811,000, or 72c per share, during the same period of the previous year. Net sales for the quarter were $3,755,388,000, up 4% from $3,604,494,000 during the same period of the previous year.
Mr. West said the company expects sales growth of 3% to 4% for the full-year 2008 and earnings per share from operations to be in the lower end of the $1.85 to $1.90 range.