Nobody Reports a Loss Like Sara Lee

Sara Lee raises its full-year guidance, despite having reported a net income loss in the third quarter.
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NEW YORK (TheStreet) -- Sara Lee (SLE) has raised its full-year guidance, despite having reported net income loss in the third quarter.

Sara Lee expects full-year adjusted earnings to be in the range of $1.06 to $1.10 a share, compared with 82 cents a share a year ago, representing an increase of 3 cents a share to 4 cents a share compared with the previously-provided guidance.

The per share increase is comprised of the expectation of 4 cents a share of improved operational performance, partially offset by a penny loss per share due to a higher tax rate.

For the third quarter, Sara Lee reported net loss attributable to Sara Lee of $336 million versus net income of $165 million previously.

Special items in the quarter included a charge of $518 million, or 75 cents a share, for taxes on the deemed repatriation of overseas earnings, primarily attributable to the cash and book value of the International Household and Body Care businesses.

Excluding special items, earnings per share were 29 cents in the third quarter, compared with 22 cents in the year-ago period.

Net sales for the third quarter were $2.6 billion, unchanged versus the year-ago period, as favorable foreign currency exchange rates and positive sales mix were offset by lower unit volumes, decreased prices and the impact of divestitures.

Analysts were expecting third-quarter earnings of 21 cents a share on revenue of $2.71 billion.

-- Reported by Andrea Tse in New York

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