Sara Lee Beats Street, Shares Rise

Sara Lee(SLE Quote) posted better-than-expected third-quarter earnings, despite softer sales in North America and the dampening affects of stronger dollar.

The company also raised its full-year forecast, sending shares up 6% to $9.46 in morning trading.

During the quarter, the company earned $165 million, or 24 cents a share, compared with $211 million, or 30 cents a share, a year earlier.

Excluding a tax adjustment, profit was 25 cents per share. Analysts expected earnings of 18 cents.

Sales slipped 7% to $3.03 billion, hurt by its foodservice unit, which sells to restaurants. The company saw strength, however, in its retail business, which sells products to grocery stores and in its bakery business.

Sara Lee said in December that it would cut 700 jobs as it outsources parts of its business.

The company now expects earnings in the range of 75 cents to 81 cents a share, up from previous guidance of 73 cents to 80 cents a share.