Hormel earnings up 15% in quarter
Aug. 25, 2011
AUSTIN, MINN. — With the international business and the Grocery Products segment contributing to results, Hormel Foods Corp. recorded a 15% increase in earnings during the third quarter.
For the quarter ended July 31, the company had earnings of $98,481,000, equal to 37c per share on the common stock, which compared with income of $85,370,000, or 32c per share, during the same quarter of the previous year. Sales for the quarter were $1,910,592,000, up 10% from $1,730,451,000.
“We are pleased to report improved earnings per share and sales for the quarter, which were up 13% and 10%, respectively,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “Earnings growth was led by our Grocery Products and Jennie-O Turkey Store segments, both of which had a strong quarter. Our international business in our All Other segment was also a strong contributor to our earnings results.
“Our Grocery Products segment generated solid results, benefiting from strong sales of Mexican products by our MegaMex Foods joint venture, and of our Spam family of products. I was pleased to see sales of our Hormel Compleats microwave meals grow nicely in the quarter. Our Jennie-O Turkey Store segment delivered another good quarter, aided by strong value-added sales and operational and supply-chain efficiencies. Our international business in our All Other segment achieved impressive results, led by strong pork export sales. Lower pork operating margins hindered our Refrigerated Foods segment results and our Specialty Foods segment was pressured by higher-than-expected raw material costs during the quarter.”
During the quarter the Grocery Products segment had an operating profit of $30,428,000, up 19% from $25,596,000 during the same period of the previous year. Sales for the segment were $245,368,000, up 4% from $235,034,000 during the same quarter of the previous year.
The Jennie-O Turkey Store had an operating profit of $34,851,000, up 14% from $30,664,000 during the same quarter of the previous year. Sales for the segment were $327,809,000, up 11% from $295,862,000 during the same quarter of the previous year.
For the nine months ended July 31, the company as a whole had net earnings of $356,886,000, or $1.34 per share, up 30% from $274,439,000, or $1.03 per share, during the same period of the previous year. During the period the company had sales of $5,791,191,000, up 12% from $5,157,680,000.
The company also said it is raising its full-year guidance to a range of $1.70 to $1.75 per share, up from $1.67 to $1.73 per share.