Sales for the quarter were $1.9 billion, up 10 percent from the same period in fiscal 2010. For the nine months ended July 31, 2011, sales totaled $5.8 billion, up 12 percent from the same period last year.
“We are pleased to report improved earnings per share and sales for the quarter, which were up 13 percent and 10 percent, respectively,” said Jeffrey M. Ettinger, chairman of the board, president and CEO. “Earnings growth was led by our Grocery Products and Jennie-O Turkey Store segments, both of which had a strong quarter. Our international business in our All Other segment was also a strong contributor to our earnings results.
Our Grocery Products segment generated solid results, benefitting from strong sales of Mexican products by our MegaMex Foods joint venture, and of our SPAM family of products. I was pleased to see sales of our Hormel Compleats microwave meals grow nicely in the quarter. Our Jennie-O Turkey Store segment delivered another good quarter, aided by strong value-added sales and operational and supply chain efficiencies. Our international business in our All Other segment achieved impressive results, led by strong pork export sales. Lower pork operating margins hindered our Refrigerated Foods segment results and our Specialty Foods segment was pressured by higher than expected raw material costs during the quarter.”
The Grocery Products segment exceeded last year’s profitability by 19 percent. Net sales increased over last year’s results by 4 percent. Improved sales of the SPAM family of products, as well as of Mexican food products by its MegaMex Foods joint venture helped offset higher commodity input costs. Sales of Hormel Compleats microwave meals also grew during the quarter.
Refrigerated Foods segment profit declined by 12 percent, due primarily to lower pork operating margins. Net sales for the quarter increased 10 percent, with strong contributions from products such as Hormel pepperoni, bacon, party trays, Natural Choice deli meats and Country Crock sides.
Jennie-O Turkey Store had another solid quarter, with segment operating profit up 14 percent from a year ago. Increased value-added sales and improved efficiencies contributed to the good results. Net sales for the quarter rose 11 percent.
“As a result of our solid results in the third quarter, we are raising our full year guidance range to $1.70 to $1.75 per share from $1.67 to $1.73 per share,” concluded Ettinger.
Source: Hormel Foods Corp.