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Hormel Foods Reports First Quarter Results

Stock quotes in this article: HRL 

Hormel Foods Corporation (NYSE: HRL) today reported its performance for the fiscal year 2013 first quarter. All comparisons are to first quarter of fiscal 2012.

HIGHLIGHTS

First Quarter

  • Diluted EPS of $.48, even with last year
  • Segment operating profit even with last year
  • Dollar sales of $2.1 billion, up 4 percent
  • Volume up 2 percent
  • Grocery Products operating profit up 13 percent; volume up 20 percent (volume up 4 percent excluding sales of Don Miguel products); dollar sales up 24 percent (sales up 4 percent excluding sales of Don Miguel products)
  • Refrigerated Foods operating profit even with last year; volume down 2 percent; dollar sales down 2 percent
  • Jennie-O Turkey Store operating profit down 23 percent; volume even with last year; dollar sales up 3 percent
  • Specialty Foods operating profit up 43 percent; volume up 1 percent; dollar sales up 7 percent
  • All Other (International) operating profit up 37 percent; volume up 5 percent; dollar sales up 4 percent

The company reported fiscal 2013 first quarter net earnings of $129.7 million, up 1 percent from earnings of $128.4 million a year earlier. Diluted earnings per share for the quarter were $.48 this year, even with last year. Sales totaled $2.1 billion, which was up 4 percent from the same period in fiscal 2012.

COMMENTARY

“We continue to generate solid top-line momentum with many of our franchises, as our broad portfolio of value-added products resonates with consumers. In terms of operating profits, strong results by our Specialty Foods, Grocery Products and All Other (International) segments offset weaker results by our Jennie-O Turkey Store segment. Results in our Refrigerated Foods segment, while even with a year ago, were hindered by poor pork processing margins. Overall, earnings per share of $0.48 during the quarter were consistent with our expectations for the start of fiscal 2013,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.

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