24 Aug 2012 --- Hormel Foods Corporation has reported its performance for the fiscal year 2012 third quarter.
Grocery Products segment profit increased by 32 percent, led by improved sales of the SPAM family of products and by the MegaMex Foods joint venture. Net sales increased over last year’s results by 21 percent, including sales of DON MIGUEL products. Without those sales, sales increased 3 percent.
Refrigerated Foods segment profit improved by 7 percent, as stronger results by the Meat Products and Foodservice businesses were able to offset lower pork operating margins. While net sales for the quarter were flat, value-added sales increased, including sales of HORMEL NATURAL CHOICE deli meats, HORMEL party trays, HORMEL bacon, and HORMEL pepperoni.
Jennie-O Turkey Store delivered another solid quarter, with segment operating profit up 12 percent from a year ago. Increased value-added sales and an improved product mix offset higher feed costs and lower commodity meat prices. Net sales for the quarter rose 7 percent, led by sales of JENNIE-O TURKEY STORE fresh tray pack products and turkey burgers.
Specialty Foods segment profit increased 18 percent, as all three business units registered gains. Net sales grew 11 percent, led by higher sales of bulk and nutritional items, private label canned meats and ingredients.
The All Other segment, which consists primarily of Hormel Foods International, grew segment profit by 55 percent and net sales by 2 percent, driven principally by stronger exports of our SPAM family of products and fresh pork.
Net interest and investment expense was lower due principally to reduced debt levels and a lower interest rate.
“Our excellent results in the third quarter give us momentum heading into the fourth quarter and put us on track to achieve results consistent with our annual guidance range of $1.79 to $1.89 per share,” concluded Ettinger. “Increased grain costs will present a challenge, but the strength of our balanced business model and the vibrancy of our branded, value-added portfolio should support continued sales and earnings growth as we close out fiscal 2012.”