ORRVILLE, Ohio, Feb. 17, 2017 /PRNewswire/ -- The J. M. Smucker Company (NYSE: SJM) today announced results for the third quarter ended January 31, 2017, of its 2017 fiscal year. All comparisons are to the third quarter of the prior fiscal year, unless otherwise noted. Results for the prior year include the Company's former U.S. canned milk business, prior to its divestiture on December 31, 2015.
EXECUTIVE SUMMARY
- Net sales decreased 5 percent. Excluding the noncomparable U.S. canned milk business divested in the prior year, net sales decreased 3 percent.
- Net income per diluted share was $1.16, including a noncash impairment charge related to certain indefinite-lived trademarks, compared to $1.55 in the prior year. The prior year included a $0.14 per share gain on the U.S. canned milk divestiture.
- Adjusted earnings per share was $2.00 compared to $2.05 in the prior year. Excluding the gain on the divestiture in the prior year, adjusted earnings per share increased 5 percent.
- Incremental synergy realization was $26.3 million in the third quarter and $86.8 million through the first three quarters of fiscal 2017. The Company now expects to recognize $120 million of incremental synergies in fiscal 2017, an increase of $20 million from its previous guidance.
- Cash provided by operating activities was $419.5 million in the third quarter. Free cash flow was $366.9 million in the quarter and $658.2 million through the first three quarters of fiscal 2017.
- The Company updated its full-year fiscal 2017 net sales, earnings, and free cash flow outlook.
CHIEF EXECUTIVE OFFICER REMARKS
"Accelerating the realization of synergies and a concentrated effort to reduce costs across the Company support our ability to deliver bottom-line growth, despite the top-line softness in our business and across the industry," said Mark Smucker, Chief Executive Officer. "We are also aggressively pursuing a variety of growth opportunities. During the quarter, we launched our Nature's Recipe® premium pet food brand into grocery and mass merchandise outlets. In addition, we announced plans to build a new manufacturing facility to support growth for our Smucker's® Uncrustables® frozen sandwiches. Behind these and other initiatives, we remain confident in achieving our long-term growth objectives and continuously enhancing shareholder value."
