June 22, 2011

Hormel: Profits to rise despite cost pressures

Hormel expects that earnings would rise in fiscal 2012, which starts November 1, even though the company's expenses may increase due to higher grain and meat costs.

CEO Jeff Ettinger affirmed Hormel's 2011 forecast at US$1.67-US$1.73 per share. He declined to give specific numbers for 2012.

Like most food companies, Hormel already has been fighting rising ingredient costs. The Austin-based company has been increasing prices, but Ettinger said there is "more work to do."