Hog Costs Weigh Down Hormel Earnings

AUSTIN, Minn. -- Hormel Foods(HRL Quote), the maker of Spam and other food products, said fiscal first-quarter profit fell 8% as its refrigerated foods segment was partly weighed down by bigger-than-expected hog costs.

Earnings dropped to $81.4 million, or 60 cents a share, from $88.2 million, or 64 cents a share, a year earlier.

Hormel, also known for its Jennie-O Turkey products, said revenue rose 4% to $1.69 billion from $1.62 billion.

Analysts polled by Thomson Reuters, whose estimates generally exclude one-time items, forecast profit of 51 cents a share on sales of $1.73 billion.

The company's refrigerated foods division also was hurt by weaker-than-expected primal markets.

The company maintained its 2009 profit outlook of $2.15 to $2.25 a share. Analysts expect earnings of $2.21 a share, on average.