Processed meat and spam-maker Hormel Foods (HRL - Get Report) on Thursday reported fiscal third-quarter earnings that matched analysts' forecasts as demand for the company's staple packaged-bacon and other packaged refrigerated foods offset the ongoing negative impact of African Swine fever on its pork products.
The Austin, Minn.-based company said it earned $199.4 million, or 37 cents a share, in its fiscal third quarter vs. $210.2 million, or 39 cents a share, in the comparable year-earlier quarter. The results matched analysts' forecasts. Sales were $2.3 billion, also in line with forecasts.
Double-digit earnings growth in the company's refrigerated foods segment offset weaker results in grocery products, CEO Jim Snee said in a statement. "Refrigerated foods effectively managed sales growth and profitability in the midst of volatile input costs caused by African swine fever," he said.
Higher avocado costs in the company's MegaMex joint venture, lower results for its Skippy peanut butter spreads business and some voluntary recalls within its "Jennie-O" lean ground turkey distribution unit also impacted earnings, Snee said.
Hormel warned in May following its fiscal second-quarter earnings that its future results would be impacted by Swine fever, which has impacted global hog and pork markets, leading to rapidly increasing input costs for Hormel and other food makers.
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The company reaffirmed its guidance for fiscal 2019, saying it continues to expect full-year net earnings of between $1.71 and $1.85 a share on sales of between $9.5 billion and $10 billion.
Shares of Hormel were down 0.05% at $40.97 in early trading on Thursday.
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