Hershey 3Q Profit Up 30 Pct, Aided By Lower Costs

MARC LEVY

HARRISBURG, Pa. (AP) — Hershey, the nation's second-largest candymaker, said Thursday that its third-quarter profit rose 30 percent, helped by price increases and lower restructuring costs.

The results beat Wall Street expectations, although The Hershey Co. shares plunged in morning trading after the company said third-quarter revenue dipped slightly and suggested it might discount its candy to win over dollar-conscious shoppers.

The fourth quarter will bring Halloween and Christmas — usually a brisk sales period for the maker of Hershey's chocolate bars, bite-sized Kisses and Reese's peanut butter cups — but consumers will be paying higher prices for Hershey's candies than last year.

That means some candy could be left on store shelves as shoppers look for cheaper prices.

Hershey's president and CEO, David J. West, promised a heavier marketing presence, including coupons, if it is necessary to help persuade dollar-conscious buyers.

"We'll make the necessary consumer investments in the coming weeks and months to ensure a healthy category and Halloween and holiday sell-through at the retail level," West said.