Higher Prices Lifts Hershey 1Q Profit By 20 Pct

MARC LEVY

HARRISBURG, Pa. (AP) — Higher prices helped Hershey's first-quarter profit surge 20 percent and beat Wall Street's expectations.

The Hershey Co., the nation's second-largest candy maker, said it also benefited from a later first quarter that captured more Easter sales but was hurt by higher commodity costs and a strengthening dollar.

"Hershey's results for the first quarter were solid, and I am pleased with the progress we continue to make," David J. West, the company's president and chief executive officer, said in a telephone conference with analysts.

However, he acknowledged that beating last year's results will become more difficult for the rest of 2009 because the company has now lapped a February 2008 price increase. Hershey also boosted prices in August.

That increase is still trickling down to store shelves because many retailers bought extra candy before it went into effect.

Hershey shares rose $1.39, or nearly 3.9 percent, to close at $37.45 Thursday.

The Hershey, Pa.-based maker of Kisses and Reese's candies said it earned $75.9 million, or 33 cents a share, in the three months that ended April 5. A year earlier, it earned $63.2 million, or 28 cents a share.