Shares of Hershey Melt Down After Reporting 4% Net Income Drop

Shares of Hershey melted in Wednesday trading after the sweets maker reported net income that fell 4 percent on increased costs. Hershey president and CEO John Bilbrey said sales trends improved versus the first half of the year and Halloween seasonal orders and net sales were slightly better than the company's estimates. However, he added, 'Retail store traffic and consumer trips continue to be irregular within the food channel. This has has adversely impacted purchases of non-seasonal everyday candy products.' BMO Capital Markets analyst Kenneth Zaslow said in a note that given the competitive U.S. environment, higher input costs and slowing international growth, Hershey appears in need of seeking bigger and more expensive opportunities, including the creation of new brands.