Hormel reports weaker fiscal 1Q earnings
Feb 23, 2009 1:18 PM
Hormel Foods Corporation has reported its performance for the fiscal 2009 first quarter.
The company reported fiscal 2009 first quarter net earnings of $81.4 million, down 8 percent from earnings of $88.2 million a year earlier. Diluted earnings per share for the quarter were $0.60 this year compared to $0.64 per share last year and sales totaled $1.69 billion, up from $1.62 billion in fiscal 2008.
Operating profit for the Refrigerated Foods segment decreased 27 percent for the quarter, primarily attributable to a significant decline in the spread between hog costs and primal values. Foodservice sales declined during the quarter, reflecting the decision by consumers to eat more meals at home and a reduction in both business and personal travel.
"Despite a very challenging economic climate, our first quarter results leave us on track to meet our annual earnings guidance goal," said Jeffrey M. Ettinger, chairman of the board, president,and chief executive officer. "As anticipated, we started out the year with weaker operating results, resulting in a decline of 4 cents per share from our record earnings of a year ago. Our Grocery Products segment had a solid quarter, led by strong canned meat sales. Our Jennie-O Turkey Store segment is doing a good job of addressing the difficult market conditions, including very weak commodity meat markets and higher input costs that continue to work their way through the system."
Effective February 15, 2009, the company paid its 322nd consecutive quarterly dividend. The annual rate is $0.76.
