Hormel Earnings Up

US - US pig meat processing giant Hormel has reported a rise in earnings for the second quarter of the 2008 financial year.
calendar icon 23 May 2008
clock icon 3 minute read

The company announced net earnings of $77.6 million, up by 14 per cent from earnings of $68.0 million a year earlier.

Diluted earnings per share for the quarter were $.56 this year compared to $.49 per share last year.

Sales reached $1.59 billion, up from $1.50 billion for the same period in 2007.

For the six months to 27 April, net earnings were $165.7 million compared to $143.3 million a year ago.

Sales reached $3.22 billion, up by seven per cent, from $3.01 billion in the same period last year.

"It was a solid quarter for Hormel Foods. We were able to meet our company objectives for sales and earnings growth in the second quarter amidst a challenging operating environment," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.

"Our Refrigerated Foods segment led the way, as lower pork input costs combined with increased sales of value-added products provided a significant increase in earnings. Our Grocery Products segment also delivered higher than expected sales and earnings, aided by strong sales of the SPAM family of products and continued growth of the HORMEL COMPLEATS product line."

"Jennie-O Turkey Store reported a significant decline in earnings as a result of a continued run-up in grain and fuel costs. The Specialty Foods segment also reported a decline in earnings, as a result of increased input and fuel costs.

"Our International segment had another excellent quarter, posting double-digit increases in dollar sales and earnings, primarily attributable to strong export sales of the SPAM family of products and fresh pork.

"Overall, our balanced model helped to stabilize earnings for the company even when two of our segments experienced a difficult operating environment."

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