Sara Lee Reports Third Quarter Earnings
Jimmy Dean continues its strong performance with positive volume growth for the quarter. New innovations, including quesadillas and bowl variants, launched in Q3 and were supported by increased media and advertising spend.
The Ball Park frozen hamburger patty launch in Q3 extends the brand beyond hot dogs. Rollout of this new product will continue through Q4. Media and Advertising campaigns supporting Ball Park are also planned for Q4.
Efforts to refresh and reposition the Hillshire Farm brand continue. The Hillshire Farm sausage business showed improvement in the quarter behind new products launched earlier in the year, increased MAP spend and selected pricing actions implemented in Q2.
In the first nine months, adjusted and reported net sales were flat as pricing and sales mix virtually offset volume declines and higher slotting expenses. Adjusted operating segment income declined 3% and reported operating segment income declined 14% as lower volumes and higher commodity costs and slotting expenses were not entirely offset by lower SG&A costs and favorable pricing.
|North American Foodservice & Specialty Meats|
|Third Quarter||($ millions)||First Nine Months|
|2012||2011||% Change||Continuing Operations||2012||2011||% Change|
|231||225||2.9||Adjusted Net Sales||798||776||2.9|
|260||243||6.9||Reported Net Sales||881||807||9.1|
|18||20||(7.4||)||Adjusted Op. Seg. Inc.||75||82||(8.3||)|
|17||21||(16.9||)||Reported Op. Seg. Inc.||77||82||(5.9||)|
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