Sara Lee 1Q Profit, Outlook Up, Though Sales Fall

SARAH SKIDMORE

PORTLAND, Ore. (AP) — Sara Lee Corp., with leaner operations and more profitable product line, reported that its first-quarter profit jumped 23 percent and raised its outlook for the year.

The maker of products such as Jimmy Dean sausages, Hillshire Farm deli meats and its namesake desserts, Sara Lee lagged the rest of the food industry for some time in terms of profitability.

But the company said Thursday that its long-term efforts to cut costs and launch better-selling new products helped its bottom line, along with prices for key ingredients stabilizing below last year's highs.

Sara Lee reported that it earned $284 million, or 41 cents per share, up from $230 million, or 32 cents per share, earned in the same quarter last year. Adjusted for one-time items in both quarters, the company earned 38 cents per share, up from 31 cents per share in the prior year.

Revenue fell 7 percent to $2.59 billion, as it sold fewer products, shed some product lines and saw a negative impact from the stronger dollar.