August 24, 2010

Hormel Foods Q3 sales value up 10%

Hormel Foods Corporation has reported its performance for the fiscal year 2010 third quarter, including sales up 10% in value.

Among the highlights of Hormel's third-quarter results were that dollar sales were US$1.7 billion, up 10% from 2009 while sales volume rose 2%.

Segment operating profit was up 13% from last year. Grocery Products operating profit was down 23%; volume was up 16% while dollar sales were up 12%. Refrigerated Foods operating profit rose 11%; volume was flat but dollar sales also rose 12%.

The operating profit for Jennie-O Turkey Store rose 93% as the result of volume decreased 6% and sales value flat. Specialty Foods operating profit was up 19%, with a 12% rise in both volume and dollar value. For all other groups, operating profit was up 3%; volume was down 3% but dollar sales rose 13%.

The company reported fiscal 2010 third quarter net earnings of US$85.4 million, up 11% from net earnings of US$77.2 million a year earlier. Diluted earnings per share for the quarter were US$0.63 this year compared to US$0.57 per share last year. Sales totalled US$1.7 billion, up 10% from US$1.6 billion in fiscal 2009.

For the nine months ended July 25, 2010, adjusted net earnings were US$287.8 million, up 20% from the same period last year. Diluted adjusted net earnings per share were US$2.13 compared to US$1.76, up 21% compared to last year.

On a US GAAP basis, the company reported net earnings of US$274.4 million, up 15% from net earnings of US$238.9 million a year earlier. Diluted US GAAP net earnings per share were US$2.03 compared to US$1.76, up 15% compared to last year. Sales for the nine months ended July 25, 2010, were US$5.2 billion compared to US$4.9 billion-up 6% from last year.