November 21, 2007

Hormel reports profit increase in Q4
 

Austin-based Hormel Foods Corp reported on Tuesday a 4-percnent increase in its fourth-quarter profits.

The company also raised its annual dividend rate by 23 percent to 74 cents a share, the largest dividend increase in the company's history.

Net earnings rose to US$101.2 million, or 73 cents per diluted share, in the 13 weeks which ended Oct. 28, compared with US$90 million, or 64 cents per diluted share, in the previous year.

The latest quarter included a 2-cent per share gain from selling a company airplane and a 1-cent gain from the disposition of the Patak's joint venture.

For the fiscal year, net earnings reached US$301.9 million, or US$2.17 per diluted share, on sales of US$6.19 billion compared to year-ago net earnings of US$286.1 million, or US$2.05 per diluted share, on sales of US$5.75 billion.

Jeff Ettinger, Hormel Chairman and CEO, said that despite disappointing results from their grocery products, the group saw success in building the Hormel Compleats microwave tray business.

Jennie-O Turkey Store increased profits despite higher grain prices due to an improved product mix, improved operations and raised product prices.

The refrigerated foods segment remained strong, aided by the acquisition of Burke Corp. in August.