August 13, 2007

Higher meat costs reduces Hormel's Q3 earnings 

Hormel Foods Corp. said its third quarter earnings would be reduced by higher meat input costs, with full year earnings affected as well.

The Minnesota-based meat processor said said it now predicts third quarter earnings will be $0.40 - $0.42 per share down from a previous range of $0.42 - $0.48 per share.

The company also expects the pressure to continue in the fourth quarter.

Higher than expected meat costs was the primary reason for the short-fall in our third quarter results, Hormel Chairman and CEO Jeffrey M. Ettinger said in a statement.

The price increase implemented at the beginning of the quarter was not enough to offset higher input costs.

Earnings for the fourth quarter are expected at a range of US$0.62 - US$0.68 per share.

Full year expected earnings are expected to be dragged down by the lacklustre third quarter.