December 8, 2006

Hormel reports increase in sales and revenue

Hormel, the pork and poultry processor, has posted a five-percent increase in fourth quarter sales and a six percent gain in fiscal 2006 sales.

Hormel Foods Corp., Austin, Minn., a major pork and turkey processor, reported positive performance for its fiscal year 2006 fourth quarter and the full year. Fourth quarter sales increased five percent from 2005 ¡§C to US$1.56 billion. For the entire year, sales totaled US$5.75 billion - a six percent increase compared to 2005.

The company reported fiscal 2006 fourth quarter net earnings of US$90 million, up 10 percent from earnings of US$82.2 million a year earlier. Sales totaled US$1.56 billion, up from US$1.48 billion in fiscal 2005.

For the year ended October 29, 2006, net earnings were US$286.1 million (up 12 percent), compared to US$254.6 million one year ago.

The microwave tray line of products, Hormel bacon bits and the Valley Fresh products were the key drivers behind the improved sales and operating profit for Hormel's Grocery Products segment.

Strong results were also reported by both the Hormel's Foodservice and Meat Products business units.

The combination of good execution by employees and the strength of the company's product portfolio provided a strong finish to a great year, Jeffrey Ettinger, Hormel chairman of the board, president, and chief executive officer, commented.

Hormel's Specialty Foods segment was outstanding, delivering an 81 percent increase in operating profit for the quarter and 78 percent increase for the year, Ettinger said.

While the company's turkey business fell short of last year's results, the strength of Hormel's other businesses more than made up for it. The company's strategy to create a faster-growing, better-balanced and more diversified business continues to deliver results, Ettinger said.