As described in the Note, for the fourth quarter of 2012, these results, prepared in accordance with U.S. generally accepted accounting principles (GAAP), included net pre-tax charges of $24.3 million or $0.08 per share-diluted. These charges included $7.9 million, or $0.03 per share-diluted, related to the Project Next Century program, non-service-related pension expense (NSRPE) of $7.6 million, or $0.02 per share-diluted, and acquisition and integration costs related to Brookside Foods Ltd. (Brookside) of $1.3 million. Additionally, the Company recorded a non-cash impairment charge of $7.5 million, or $0.03 per share-diluted, related to its 69 percent investment in Tri-US, Inc. of Boulder, Colorado, a company that manufactured nutritional beverages under the “ mix1®” brand name. As a result, reported gross margin of 43.1 percent increased 280 basis points versus last year while reported income before interest and income taxes (EBIT) margin of 14.4 percent declined 20 basis points versus 2011. For the fourth quarter of 2011, results included pre-tax charges for Project Next Century and the Global Supply Chain Transformation Program of $27.7 million, or $0.08 per share-diluted, and $1.0 million of NSRPE. Adjusted net income, which excludes these net charges, was $169,186,000, or $0.74 per share-diluted, in the fourth quarter of 2012, compared with $160,325,000, or $0.70 per share-diluted, in the fourth quarter of 2011, an increase of 5.7 percent in adjusted earnings per share-diluted.For the full-year 2012, consolidated net sales were $6,644,252,000, compared with $6,080,788,000 in 2011, an increase of 9.3 percent. Reported net income for 2012 was $660,931,000, or $2.89 per share-diluted, compared with $628,962,000 or $2.74 per share-diluted, for 2011. As described in the Note, for the full-years 2012 and 2011, these results, prepared in accordance with GAAP, included net pre-tax charges of $117.7 million and $35.0 million, or $0.35 and $0.09 per share-diluted, respectively. Charges associated with the Project Next Century program for 2012 and 2011 were $76.3 million and $43.4 million, or $0.22 and $0.11 per share-diluted, respectively. NSRPE for 2012 and 2011 was $20.6 million and $2.8 million, or $0.06 and $0.01 per share-diluted, respectively.
Hershey Announces Fourth Quarter And Full-Year 2012 Results; Updates Outlook For 2013
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