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Hershey's

(HSY) - Get Hershey Company Report

third-quarter sales rose 3.3% year over year, but the chocolate maker said the results were disappointing and it took a somewhat cautious stance on its full-year profits.

Sales for the quarter ended Oct. 1 rose to $1.41 billion from $1.37 billion a year ago. Reported net income was $183.7 million, or 77 cents a share, up from $114.2 million and 46 cents for the same period last year.

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Excluding items, Hershey would have earned 78 cents in the latest quarter

"Hershey's results for the third quarter were below expectations," said Richard Lenny, chairman, president and chief executive. "Following a period of sustained in-market success, we experienced a slowdown in consumer takeaway and thus, a loss of market share." He added that "seasonal performance continues to be strong with Halloween off to a good start."

Looking ahead, Hershey expects net sales growth for 2006 to be within its long-term 3% to 4% growth range and the increase in diluted earnings per share from operations to be slightly below its 9% to 11% expectations.

For 2007, the company projected that both revenue and earnings would be in the range of its long-term goals.