Grocery Products unit boosts Hormel net
February 18, 2010
AUSTIN, MINN. — With strong results in the Grocery Products segment contributing, earnings for Hormel Foods, Corp. rose 37% in the first quarter.
For the quarter ended Jan. 24, the company had earnings of $111,207,000, equal to 83c per share on the common stock, which compared with income of $81,383,000, or 61c per share, during the same quarter of the previous year. Sales for the quarter were $1,727,447,000, up 2% from $1,689,086,000 during the same quarter of the previous year.
“We are pleased to report record earnings and sales for the quarter,” said Jeffrey M. Ettinger, chairman, president and chief executive officer. “Four of the five business segments delivered double-digit profit gains during the quarter. We are particularly gratified to see the solid improvement in sales and will continue to focus our efforts in this area. Our announcement last week regarding our new Hormel brand advertising campaign demonstrates our commitment to growing our top-line.”
Operating profit in the Grocery Products segment was $54,170,000, up 37% from $39,635,000 during the same quarter of the previous year. Sales in the segment were $261,644,000, up 8% from $241,943,000 during the same quarter of the previous year.
Operating profit in the Refrigerated Foods segment was $70,188,000, up 53% from $45,745,000 during the same quarter of the previous year. Sales in the quarter were $892,302,000, down slightly from $897,424,000 during the same quarter of the previous year.
The Jennie-O Turkey Store segment had an operating profit of $33,267,000, up 14% from $29,249,000 during the same quarter of the previous year. Sales in the segment were $319,951,000, up 5% from $305,039,000.
The company also raised its full-year guidance to a range of $2.66 to $2.78 per share from $2.63 to $2.73.
“We anticipate higher hog costs as we progress through the year, and we recognize the strong investment performance in our rabbi trust last year will result in a more difficult comparison,” Mr. Ettinger said. “Nevertheless, we believe our strong portfolio of branded products and the strength of our dedicated team should allow us to build upon the momentum of our excellent start.”