AUSTIN, MINN. — Boosted by strong performance in the Grocery Products segment, net earnings for Hormel Foods Corp. rose 4% for the second quarter.
For the quarter ended April 26, Hormel had earnings of $80,385,000, equal to 60c per share on the common stock, which compared with $77,561,000, or 57c per share, during the same quarter of the previous year. Sales for the quarter were $1,595,043,000, nearly flat compared with $1,594,084,000 during the same quarter of the previous year.
"We are pleased to report record earnings for the quarter," said Jeffrey M. Ettinger, chairman, president and chief executive officer. "Our Grocery Products segment again delivered increases in sales and segment profit with strong sales of canned meats and Mexican products. Our Jennie-O Turkey Store segment continues to rebound despite difficult market conditions as they were faced with even lower commodity meat prices than in the first quarter."
The Grocery Products segment had operating profit of $43,677,000, up 5% from $41,611,000 during the same quarter of the previous year. The segment had sales of $241,684,000, down 4% from $233,464,000 during the same quarter of 2008.
The Refrigerated Foods segment had operating profit of $51,695,000, down 7% from $55,625,000 during the same quarter of the previous year. The segment had sales of $834,062,000, nearly flat compared with $831,821,000 during the same quarter of 2008.
The Jennie-O Turkey Store posted operating profit of $16,678,000, up 42% from $11,708,000 during the same quarter of the previous year. Sales were $289,745,000, down 1% from $291,889,000.
"As a result of our better-than-expected first half, we now anticipate full-year results in the upper end of our previously announced guidance range of $2.15 to $2.25 per share," Mr. Ettinger said. "Despite potential on-going challenges, which could include continued negative cutout margins, export market issues and commodity cost pressures, we believe our strong portfolio of branded products with many good value offerings and the strength of our management team will lead to a solid performance this year."
For the six months ended April 26 the company had net earnings of $161,768,000, or $1.20 per share, down 2% from $165,742,000, or $1.22 per share, during the same period of the previous year. Sales for the six months were $3,284,129,000, up 2% from $3,215,249,000.