In the fourth quarter, Foodservice/Other adjusted net sales declined 1.2% with the meats business outperforming the bakery business. The meats business benefited from increased convenience store sales while the bakery business was unfavorably impacted by disruptions from plant upgrades at the Tarboro, North Carolina facility and continued industry weakness in desserts. Adjusted operating segment income decreased $9 million, primarily due to lower pricing, unfavorable mix, higher distribution costs, and the Tarboro plant upgrades.
For the full fiscal year, Foodservice/Other adjusted net sales increased 2.4% primarily driven by higher prices and higher commodity sales in the second half. Adjusted operating segment income contracted 22% in the fiscal year, driven by lower non-commodity volumes, higher trade spend, discounts for aged inventory (discussed last quarter), and the disruptions associated with the Tarboro plant upgrades .
Australian BakerySales in the quarter were down as a result of negative currency impacts. The business increased sales by 1% for the full year, helped by positive currency impacts, and also swung to a full year operating profit of $4 million after showing a $2 million loss in fiscal 2011. The business introduced new dessert products and closed some less profitable outlet stores in the quarter. Additionally, the Australian business has completed the separation from the international coffee & tea company and is operating on a stand-alone basis. Outlook for Fiscal 2013 In fiscal year 2013, sales are expected to be roughly in line with fiscal 2012 on a dollar basis. Adjusted EPS is expected to be between $1.40 and $1.55. Management’s outlook for fiscal 2013 assumes modest commodity deflation. Adjusted operating segment income is expected to be flat to modestly down as a result of investments behind higher brand support and innovation. The benefits of significant cost reductions do not fully offset inflation and certain increases in SG&A. As previously communicated, the company also anticipates an effective tax rate of 35%, net interest expense of between $35-$40 million, and corporate expenses of approximately $70 million, excluding significant items and mark-to-market impacts related to commodity hedges.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV