Hormel income up 41% in quarter
May 25, 2011
AUSTIN, MINN. — Stronger commodity prices and better sales of deli meats helped contribute to a 41% increase in earnings during the second quarter for Hormel Foods Corp.
For the quarter ended May 1, the company had earnings of $109,579,000, equal to 40c per share on the common stock, which compared with income of $77,862,000, or 29c per share, during the same quarter of the previous year. Sales for the quarter were $1,959,041,000, up 15% from $1,699,782,000.
“We are pleased to report double-digit growth in both earnings and sales for the quarter,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “Earnings growth was led by our Refrigerated Foods and Jennie-O Turkey Store segments, both of which had a strong quarter. We are also gratified to attain sales growth in all five of our segments.
“Our Refrigerated Foods segment generated excellent results, benefitting from strong pork operating margins, and our Jennie-O Turkey Store segment delivered another outstanding quarter, aided by stronger commodity meat prices and improved efficiencies. Our international business in our All Other segment also achieved impressive results, driven by strong export sales. Both our Grocery Products and Specialty Foods segments were pressured by higher commodity costs during the quarter.”
The Grocery Products segment had an operating profit of $39,048,000 during the quarter, up 18% from $33,022,000 during the same quarter of the previous year. The segment had sales of $260,273,000, up 1% from $256,665,000 during the same quarter of the previous year.
Operating profit for the Refrigerated Foods segment was $70,250,000, up 27% from $55,523,000 during the same quarter of the previous year. Sales for the segment were $1,040,624,000, up 17% from $893,470,000.
The Jennie-O Turkey Store had an operating profit of $46,703,000, up 45% from $32,169,000 during the same quarter of the previous year. The segment had sales of $365,953,000, up 25% from $292,551,000.
For the six months the company as a whole had earnings of $258,405,000, or 95c per share, up 37% from $189,069,000, or 70c per share, during the same period of the previous year. Sales for the six months were $3,880,599,000 up 13% from $3,427,229,000 during the same period of the previous year.
The company said it is raising its full-year guidance to $1.67 to $1.73 per share, up from $1.62 to $1.68 per share.