J. M. Smucker Co. Announces 8 Percent Increase In Net Sales In Second Quarter Fiscal 2013

Selling, distribution, and administrative expenses increased 9 percent in the second quarter of 2013, compared to the second quarter of 2012, driven in part by the acquired Sara Lee foodservice business, and increased as a percentage of net sales from 15.6 percent to 15.8 percent. Marketing, selling, and general and administrative expenses increased 11 percent, 10 percent, and 9 percent, respectively.

Higher amortization expense was recognized in the second quarter of 2013, compared to 2012, primarily related to the intangible assets associated with the Sara Lee foodservice business acquisition.

Operating income increased $35.9 million in the second quarter of 2013, compared to 2012. Excluding special project costs in both periods, operating income increased $19.9 million, or 8 percent, and increased from 16.0 percent of net sales in 2012 to 16.1 percent in 2013. Both operating income measures include a loss on divestiture of $11.3 million in 2012.