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

Segment operating profit was up 13 per cent from last year. Grocery Products operating profit was down 23 per cent; volume was up 16 per cent while dollar sales were up 12 per cent. Refrigerated Foods operating profit rose 11 per cent; volume was flat but dollar sales also rose 12 per cent. The operating profit for Jennie-O Turkey Store rose 93 per cent as the result of volume decreased six per cent and sales value flat. Specialty Foods operating profit was up 19 per cent, with a 12 per cent rise in both volume and dollar value. For all other groups, operating profit was up three per cent; volume was down three per cent but dollar sales rose 13 per cent.

Diluted EPS of $0.63 represents an 11 per cent increase from $0.57 per share in 2009

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

For the nine months ended 25 July 2010, adjusted net earnings were $287.8 million, up 20 per cent from the same period last year. Diluted adjusted net earnings per share were $2.13 compared to $1.76, up 21 per cent compared to last year. On a US GAAP basis, the company reported net earnings of $274.4 million, up 15 per cent from net earnings of $238.9 million a year earlier. Diluted US GAAP net earnings per share were $2.03 compared to $1.76, up 15 per cent compared to last year. Sales for the nine months ended 25 July 2010, were $5.2 billion compared to $4.9 billion – up six per cent from last year.

Jeffrey M. Ettinger, chairman of the board, president and chief executive officer, commented: "We are pleased to report strong earnings and sales this quarter, which were up 11 per cent and 10 per cent, respectively. We are gratified by the continued strong sales growth, particularly in our branded and value-added product portfolios. Earnings growth was attributable to segment profit gains in four of our five segments, led by Jennie-O Turkey Store. This segment had an excellent quarter, showing continued strength in all areas of the business.

"Our Refrigerated Foods segment had a strong quarter, benefiting from higher cutout margins, and our Specialty Foods segment continued its momentum this quarter on sales growth in all three of its business units. Our Grocery Products segment had a difficult quarter, hampered by higher raw material input costs.

"We continue to be pleased with the excellent progress made with our new product lines in both our MegaMex Foods business and our Country Crock side dish acquisition, both of which contributed to our positive results this quarter," concluded Mr Ettinger.

Further Reading

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