Hormel Foods Corp. reported its performance for the fiscal year 2013 first quarter. Fiscal 2013 first quarter net earnings were $129.7 million, up 1 percent from earnings of $128.4 million a year earlier. Diluted earnings per share for the quarter were $.48 this year, even with last year. Sales totaled $2.1 billion, which was up 4 percent from the same period in fiscal 2012.
“We continue to generate solid top-line momentum with many of our franchises, as our broad portfolio of value-added products resonates with consumers. In terms of operating profits, strong results by our specialty foods, grocery products and all other (International) segments offset weaker results by our Jennie-O Turkey store segment. Results in our refrigerated foods segment, while even with a year ago, were hindered by poor pork processing margins. Overall, earnings per share of $0.48 during the quarter were consistent with our expectations for the start of fiscal 2013,” Jeffrey M. Ettinger, chairman of the board, president and chief executive officer said in a prepared statement.
“Our specialty foods team delivered impressive earnings on significant sales growth and improved operating efficiencies. Our grocery products segment turned in a fine quarter, led by sales of the SPAM® family of products, HORMEL® chili, MARY KITCHEN® hash and HERDEZ® salsa. Our International team achieved strong earnings growth supported by fresh pork exports and higher profits by our operations in China,” commented Ettinger. “Although our team at Jennie-O Turkey Store was confronted with higher grain costs and lower commodity turkey meat prices, we are encouraged by the continued growth in sales of our value-added turkey products, including JENNIE-O TURKEY STORE® fresh tray pack products and turkey bacon.”
“At the beginning of our second quarter, we closed on the acquisition of the SKIPPY® peanut butter business, excluding China. Since then, we have begun to integrate the business into our grocery products and International operating units and are actively working on information technology, logistics and other support projects aimed at delivering synergistic benefits. Our organization is excited about this wonderful new addition to our product portfolio and about its growth prospects,” stated Ettinger.