Hormel Foods Corporation has reported its performance for the fiscal year 2011 third quarter.

All comparisons are to the third quarter or first nine months of fiscal 2010. All per share results reported here have been adjusted to give effect to the two-for-one stock split, which was effective on 1 February 2011.

Among the highlights for the period are that diluted EPS of $.36 up 13 per cent from diluted EPS of $0.32 for the same quarter last year.

Segment operating profit is up two per cent, and dollar sales were $1.9 billion, up 10 per cent, on flat volumes. Grocery Products operating profit was up 19 per cent, with volume up one per cent and dollar sales up four per cent. Jennie-O Turkey Store operating profit was up 14 per cent, with volume down down but dollar sales up 11 per cent. Refrigerated Foods showed operating profit down 12 per cent, with volume down one per cent and dollar sales up 10 per cent. Specialty Foods' operating profit was down eight per cent on flat volume but dollar sales were up 11 per cent. Operating profit for the company's other businesses were up 67 per cent with volume up 22 per cent; dollar sales up 35 per cent.

The company reported fiscal 2011 third quarter net earnings of $98.5 million, up 15 per cent from net earnings of $85.4 million a year earlier. For the nine months ended 31 July 2011, net earnings were $356.9 million, up 24 per cent from adjusted net earnings of $287.8 million the same period last year. Diluted net earnings per share for the nine months ended 31 July 2011 were $1.31, up 24 per cent from diluted adjusted net earnings per share of $1.06 last year.

On a US GAAP basis, net earnings for the nine months ended 31 July 2011 were $356.9 million or $1.31 per diluted share (both up 30 per cent) compared to net earnings of $274.4 million or $1.01 per diluted share from the same period last year.

Sales for the quarter were $1.9 billion, up 10 per cent from the same period in fiscal 2010. For the nine months ended 31 July 2011, sales totalled $5.8 billion, up 12 per cent from the same period last year.

Jeffrey M. Ettinger, chairman of the board, president and chief executive officer, commented: "We are pleased to report improved earnings per share and sales for the quarter, which were up 13 per cent and 10 per cent, respectively. Earnings growth was led by our Grocery Products and Jennie-O Turkey Store segments, both of which had a strong quarter.

"Our Grocery Products segment generated solid results, benefitting from strong sales of Mexican products by our MegaMex Foods joint venture, and of our SPAM family of products. I was pleased to see sales of our Hormel Compleats microwave meals grow nicely in the quarter. Our Jennie-O Turkey Store segment delivered another good quarter, aided by strong value-added sales and operational and supply chain efficiencies. Our international business in our All Other segment achieved impressive results, led by strong pork export sales. Lower pork operating margins hindered our Refrigerated Foods segment results and our Specialty Foods segment was pressured by higher than expected raw material costs during the quarter.

"As a result of our solid results in the third quarter, we are raising our full year guidance range to $1.70 to $1.75 per share from $1.67 to $1.73 per share," concluded Mr Ettinger.

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