J. M. Smucker
today reported a 13% fall in profit for the third quarter, hurt by a drop in sales of oils and baking products.
The Orrville, Ohio, jelly giant made $31 million, or 54 cents a share, compared with $36 million, or 61 cents, a year ago. Adjusted for restructuring and merger related charges, earnings were 68 cents in the most recent quarter, below the Thomson First Call consensus estimate of 73 cents a share.
Third quarter revenue fell 3% from a year ago to $536.5 million. Analysts were expecting revenue of $558.26 million.
The company expects to earn $2.60 a share, excluding restructuring and merger and integration costs, on sales of about $2.14 billion for the year. Analysts were expecting earnings of $2.70 a share on sales of $2.17 billion.
Operating margin slid 200 basis points to 8.9%, hit by charges on restructuring and mergers, while gross margin fell 120 basis points to 30.5% on lower sales volumes.
"Our quarter was adversely affected by a decrease in sales in our oils and baking businesses and higher operating costs, " the company said. "We are confident that the fundamentals of the business have not changed and we remain committed to our long-term growth goals."
The company's stock was trading Friday at $39.03, down $3.40, or 8%.
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