Meat and food processing giant Hormel Foods has reported record fiscal 2014 third quarter net earnings of $138.0 million, up 21 per cent from net earnings of $113.6 million a year earlier.
Diluted earnings per share for the quarter were $0.51, up 21 per cent compared to $0.42 last year.
Sales for the quarter were $2.3 billion, up six per cent from the same period in fiscal 2013 despite being down in volume by one per cent.
Segment operating profit increased by 23 per cent.
Grocery Products operating profit were down by 36 per cent with volume down by three per cent and dollar sales also down by three per cent.
Refrigerated Foods operating profit was up by 101 per cent with volume flat and dollar sales up 12 per cent.
Jennie-O Turkey Store operating profit was up by 42 per cent while volume was down by two percent and dollar sales were up by four per cent.
Specialty Foods operating profit was down by 25 per cent, with volume down by nine per cent and dollar sales down by 10 per cent.
International & Other operating profit was up by 12 per cent with volume up 12 per cent and dollar sales up by18 per cent.
“Our team was able to achieve another quarter of record sales and earnings, with sales up six per cent and earnings per share up 21 per cent versus the same quarter a year ago,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.
“Strong demand for pork and turkey, and increased sales of value-added products in our Refrigerated Foods, Jennie-O Turkey Store and International & Other segments more than offset a challenging quarter for our Grocery Products and Specialty Foods segments,” commented Mr Ettinger.
“Our balanced model continues to support consistent revenue and earnings growth.”
He added: “Heading into the fourth quarter we will build on the momentum of SKIPPY peanut butter and HORMEL REV snack wraps with advertising campaigns during the back-to-school season.
“We are excited to enhance our portfolio of leading brands with the addition of MUSCLE MILK premium protein products in the high-growth sports nutrition category.
“We anticipate a strong finish to the year from our Jennie-O Turkey Store segment, aided by beneficial grain markets and growing value-added sales, and from our International & Other and Specialty Foods segments,” Mr Ettinger said.
“The impact of cost pressures in our Grocery Products segment is likely to continue in the fourth quarter, and pork operating margins are not expected to be as beneficial to Refrigerated Foods. Taking all of these factors into account, we expect to finish fiscal 2014 within our previously stated guidance range of $2.17 to $2.27 per share,” said Mr Ettinger.
