The Hershey Company (NYSE: HSY):
- Net sales increase 10.7%, driven by pricing
- Earnings per share-diluted of $0.87 as reported and $0.96 adjusted
- Net sales and earnings per share-diluted for 2012 updated:
- Full year net sales expected to increase 7-9%, including Brookside acquisition
- Reported earnings per share-diluted expected to be $2.82 to $2.92
- Adjusted earnings per share-diluted expected to increase 10-12%
The Hershey Company (NYSE: HSY) today announced sales and earnings for the first quarter ended April 1, 2012. Consolidated net sales were $1,732,064,000 compared with $1,564,223,000 for the first quarter of 2011. Reported net income for the first quarter of 2012 was $198,651,000 or $0.87 per share-diluted, compared with $160,115,000 or $0.70 per share-diluted for the comparable period of 2011.
These results, prepared in accordance with generally accepted accounting principles (GAAP), included net pre-tax charges, as well as non-service related pension expense (NSRPE), of $33.6 million, or $0.09 per share-diluted. The majority of these charges, $23.6 million, or $0.07 per share-diluted, were related to the Project Next Century program. Additionally, acquisition and integration costs related to the Brookside acquisition were $5.9 million, or $0.01 per share-diluted, and NSRPE was $4.1 million, or $0.01 per share-diluted. For the first quarter of 2011, GAAP results included net pre-tax charges of $9.7 million, or $0.02 per share-diluted, of Project Next Century costs and $1.3 million, or $0.01 per share-diluted, related to NSRPE. Adjusted net income, which excludes these net charges, was $219,910,000 or $0.96 per share-diluted in the first quarter of 2012, compared with $167,134,000 or $0.73 per share-diluted in the first quarter of 2011, an increase of 31.5 percent in adjusted earnings per share-diluted. See the Note for a reconciliation of GAAP and non-GAAP items.