Turkey business boosts Hormel earnings
November 23, 2010
by Keith Nunes
AUSTIN, MINN. — Hormel Foods Corp.’s Refrigerated Foods and Jennie-O Turkey Store business units led the company during fiscal year 2010, ended Oct. 31. For the year, Hormel Foods’ net income was $399,776,000, equal to $2.97 earnings per share on the common stock, compared with net income of $345,978,000, or $2.55 per share, during the previous fiscal year.
Sales during the year rose 11% to $7,220,719,000.
“We are pleased to report a strong finish this year, with both earnings and sales up double-digits this quarter,” said Jeffrey M. Ettinger, chairman, president and chief executive officer. “Earnings growth was driven by segment profit gains in our Jennie-O Turkey Store and Refrigerated Foods segments.
“Our Jennie-O Turkey Store segment led the way with robust earnings attributable to improved efficiencies across all areas of our business, aided by strong commodity turkey meat prices and lower grain costs. Our Refrigerated Foods segment also posted strong earnings, benefiting from higher pork operating margins. Our Grocery Products segment had a difficult quarter, hampered by higher raw material input costs in comparison to very low input costs a year ago.”
For the fourth quarter, Hormel’s net income was $122,608,000, or 91c per share, compared with $104,606,000, or 78c per share, during the same period of the previous year.
Sales for the quarter were $2,063,039,000, a 23% increase compared with the same period during fiscal 2009.