Sara Lee swings back to profit

Net income at Sara Lee Corp. in the year ended June 27 totalled US$364 million, compared to a loss of US$79 million in fiscal year 2008.

Sales for 2009 reached US$12,881 million, down slightly from 2008's US$13,212 million.

The North American Retail business unit recorded US$260 million in operating income during the year, up 68 percent on-year. The North American Foodservice division had an operation income of US$54 million, a significant turnaround from the US$302-million loss in 2008.

Sara Lee expects full-year earnings per share from continuing operations to be in the range of US$1.03 to US$1.09. The company expects all of its business units to see improved operating income during fiscal 2010, except for the North American Foodservice unit which is facing continuing economic pressure.

In the fourth quarter of fiscal 2009, Sara Lee lost US$14 million, but it was a great improvement from last year's loss of US$672 million. Sales for the quarter reached US$3,164 million compared with US$3,507 million for the same period of fiscal 2008.

The strong performance is in spite of tough economic and competitive conditions, said Brenda Barnes, chairman and chief executive officer.

The results reflect the significant progress made in focusing Sara Lee on core businesses with large and growing brands in important categories, she said.

Barnes said efficiencies and productivity have been improved across the board, and the company will continue to invest in the future. Sara Lee will also continue to executive its growth strategy in fiscal 2010 and in the years ahead, she said.