Hershey Reports Q1 Net Sales Up 10.7%
These results, prepared in accordance with generally accepted accounting principles (GAAP), included net pre-tax charges, as well as non-service related pension expense (NSRPE), of $33.6 million, or $0.09 per share-diluted.
25 April 2012 --- The Hershey Company announced sales and earnings for the first quarter ended April 1, 2012. Consolidated net sales were $1,732,064,000 compared with $1,564,223,000 for the first quarter of 2011. Reported net income for the first quarter of 2012 was $198,651,000 or $0.87 per share-diluted, compared with $160,115,000 or $0.70 per share-diluted for the comparable period of 2011.
These results, prepared in accordance with generally accepted accounting principles (GAAP), included net pre-tax charges, as well as non-service related pension expense (NSRPE), of $33.6 million, or $0.09 per share-diluted. The majority of these charges, $23.6 million, or $0.07 per share-diluted, were related to the Project Next Century program. Additionally, acquisition and integration costs related to the Brookside acquisition were $5.9 million, or $0.01 per share-diluted, and NSRPE was $4.1 million, or $0.01 per share-diluted. For the first quarter of 2011, GAAP results included net pre-tax charges of $9.7 million, or $0.02 per share-diluted, of Project Next Century costs and $1.3 million, or $0.01 per share-diluted, related to NSRPE. Adjusted net income, which excludes these net charges, was $219,910,000 or $0.96 per share-diluted in the first quarter of 2012, compared with $167,134,000 or $0.73 per share-diluted in the first quarter of 2011, an increase of 31.5 percent in adjusted earnings per share-diluted. See the Note for a reconciliation of GAAP and non-GAAP items.
In 2012, the Company expects reported earnings per share-diluted of $2.82 to $2.92. These results, prepared in accordance with GAAP, include business realignment charges, NSRPE and acquisition and integration costs of $0.25 to $0.29 per share-diluted. The majority of these charges, $0.16 to $0.19 per share-diluted, are related to the Project Next Century program. NSRPE and acquisition and integration costs related to the Brookside Foods Ltd. acquisition are expected to be $0.05 per share-diluted and $0.04 to $0.05 per share-diluted, respectively. Despite the impact of these charges, in 2012, reported gross margin is expected to increase 90 to 100 basis points. The forecast for total pre-tax GAAP charges and non-recurring project implementation costs related to the Project Next Century program remains at $150 million to $160 million.
