This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Hormel Foods Reports Fourth Quarter, Record Full Year Results

SEGMENT OPERATING HIGHLIGHTS – FOURTH QUARTER

Grocery Products (16% of Net Sales, 26% of Total Segment Operating Profit) The Grocery Products segment profit increased 22 percent, led by strong sales of the SPAM® family of products and the portfolio of products within our MegaMex Foods joint venture. Sales for the quarter were up 21 percent, with contributions by the aforementioned products and HORMEL® chili.

Refrigerated Foods (49% of Net Sales, 30% of Total Segment Operating Profit) Refrigerated Foods segment profit declined 12 percent, as strong results in our value-added businesses were not able to fully offset lower pork operating margins and losses in our live hog operations. Sales for the quarter were down 3 percent, due to lower commodity meat prices. Value-added products grew in the quarter, led by HORMEL® pepperoni and party trays in the Meat Products group and HORMEL® NATURAL CHOICE® deli meats in the Foodservice group.

Jennie-O Turkey Store (20% of Net Sales, 26% of Total Segment Operating Profit) Jennie-O Turkey Store had another solid quarter, with segment profit up 5 percent. The continued sales growth of value-added products and an improved product mix offset higher feed costs during the quarter. Sales for the quarter increased 5 percent, led by sales of JENNIE-O TURKEY STORE® fresh tray pack, turkey bacon and turkey burgers.

Specialty Foods (11% of Net Sales, 12% of Total Segment Operating Profit) The Specialty Foods segment posted operating profits 8 percent higher than last year on a 7 percent increase in sales. Higher sales of private label canned meats contributed to the improved results.

All Other (4% of Net Sales, 6% of Total Segment Operating Profit) The All Other segment, which consists primarily of Hormel Foods International, posted segment profits that were 24 percent ahead of last year, while sales grew 1 percent. Strong export sales to Canada and improved margins in the SPAM® family of products contributed to the results.

General Corporate Expense General corporate expenses were lower, driven principally by a reduction in the lower of cost or market inventory reserve and lower employee related costs.

OUTLOOK

"We expect to deliver sales and earnings growth in fiscal 2013. In particular, we are looking for our Refrigerated Foods, Grocery Products, Specialty Foods and All Other (International) segments to drive profit growth in fiscal 2013, as our Jennie-O Turkey Store segment goes up against higher grain costs and historically high results. We plan on making additional cuts to both our turkey and pork harvest levels during fiscal 2013, to reduce our exposure to volatile commodity markets. Taking all of the relevant factors into account, we are setting our 2013 guidance range at $1.90 to $2.00 per share," remarked Ettinger.

Stock quotes in this article: HRL 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs