Hormel earnings up 34% in quarter

by Staff
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AUSTIN, MINN. — Stronger sales helped propel a 34% increase in earnings at Hormel Foods Corp. during the first quarter.

For the quarter ended Jan. 30, the company had earnings of $148,826,000, equal to 56c per share on the common stock, which compared with earnings of $111,207,000, or 42c per share, during the same quarter of the previous year. Sales for the quarter were $1,921,558,000, up 11% from $1,727,447,000 during the same quarter of the previous year.

“We are pleased to report double-digit increases in both sales and earnings for the quarter,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “All five segments generated year-over-year sales growth. Earnings growth was led by excellent performance by our Jennie-O Turkey Store and Refrigerated Foods segments.

“Our Jennie-O Turkey Store segment had an outstanding quarter, driven by favorable commodity meat margins and improved efficiencies across the entire supply chain and operations. It also experienced improved sales of value-added products. Our Refrigerated Foods segment had a strong quarter as well, benefiting from continued high pork operating margins. We were pleased by the performance of our international business in the All Other segment, too. Both our Grocery Products and Specialty Foods segments were pressured by higher commodity input costs during the quarter.”

Operating profit for the Refrigerated Foods segment was $96,134,000, up 37% from $70,188,000 during the same quarter of the previous year. Sales for the segment were $1,010,702,000, up 13% from $892,302,000 during the same quarter of the previous year.

The Jennie-O Turkey Store had an operating profit of $73,825,000, up 122% from $33,267,000 during the same quarter of the previous year. The segment had sales of $364,517,000, up 13% from $319,951,000 during the same quarter of the previous year.

The Grocery Products segment had an operating profit of $48,562,000, down 10% from $54,170,000 during the same quarter of the previous year. Sales for the segment were $276,899,000, up 6% from $261,644,000 during the same quarter of the previous year.

The company also said it is raising its full-year guidance range to $1.62 to $1.68 per share from $1.55 to $1.60 per share.

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