The Hillshire Brands Company reported results for its first quarter of fiscal year 2014. Net sales increased 1% to $984 million over the prior year's first quarter. Adjusted operating income was $76 million, down 24.4% versus the prior year's 76.5% increase, reflecting significant input cost inflation in the quarter and unusually low SG&A in the prior year. Reported operating income was down 35.2%. Adjusted diluted EPS was $0.35 down, 28.6% versus the prior year's 88.5% increase. Hillshire also reported diluted EPS of $0.23 down 42.5%
"I'm pleased to report a solid start to the year," said Sean Connolly, president and chief executive officer of The Hillshire Brands Company. "Although input cost inflation has been significantly higher than anticipated, we continue to make good progress with our brand-building efforts. In particular, I'm encouraged by the overall strong consumption trends we've seen.