Sara Lee Sales Down 9.8% in Q4

Adjusted net sales decreased 1.3% in the fourth quarter, but increased 2.7% in fiscal 2009. Adjusted net sales exclude acquisitions/divestitures and present fiscal 2008 net sales at fiscal 2009 foreign currency exchange rates.

13 Aug 2009 Sara Lee Corp. has reported net sales of $3.2 billion for the fourth quarter of fiscal 2009, ending June 27, 2009, a decline of 9.8% compared to $3.5 billion in the comparable period last year. For fiscal 2009, net sales were $12.9 billion, a decrease of 2.5% compared to $13.2 billion in the prior year. Net sales increased in the North American fresh bakery and retail segments, up 8.5% and 5.9% respectively, but these increases were more than offset by the impact of unfavorable foreign currency exchange rates, most notably the euro, and divestitures made during the year.

Adjusted net sales decreased 1.3% in the fourth quarter, but increased 2.7% in fiscal 2009. Adjusted net sales exclude acquisitions/divestitures and present fiscal 2008 net sales at fiscal 2009 foreign currency exchange rates.

“I am pleased to report that we’ve just completed our second consecutive year of strong overall performance, despite tough economic and competitive headwinds,” said Brenda C. Barnes, chairman and chief executive officer of Sara Lee Corp. “Our 2009 results reflect the significant progress we have made in transforming Sara Lee and focusing the company on core businesses with large and growing brands in important categories. We’ve dramatically improved efficiencies and productivity across the board, while fostering a culture of innovation and collaboration. We’ve built a solid foundation and will continue to invest in the future. We are confident that we will continue to execute our growth strategy in fiscal 2010 and in the years to come,” she added.

Sara Lee reported fourth quarter operating income of $65 million, compared to an operating loss of $506 million for the year-ago period, while adjusted operating income was $331 million, down 6.2% compared to the year-ago period. In the fourth quarter of fiscal 2009, the company incurred non-cash, pre-tax impairment charges of $207 million associated with goodwill balances and other long-lived assets at the Spanish bakery business, as well as $61 million of other charges for significant items.

For the fiscal year, the company reported operating income of $713 million in fiscal 2009, up significantly from $260 million in fiscal 2008. Adjusted operating income was $1.02 billion in fiscal 2009, compared to $1.0 billion in the prior year, an increase of 1.9%. Adjusted operating income excludes the impact of significant items, contingent sale proceeds and acquisitions/divestitures and presents fiscal 2008 results at fiscal 2009 foreign currency exchange rates.

Fourth quarter results were a net loss of $14 million in fiscal 2009 compared to a net loss of $672 million last year primarily due to significant impairment charges in both years. Diluted EPS as reported were a loss of $(.02) in the fourth quarter of fiscal 2009 versus a loss of $(.95) in the year-ago period.