Increased costs, investment loss drop Hormel 4Q earnings - 33 PERCENT!

[Guest guest]

I don't really care WHY they lost money - I'm just glad they did, since they don't have gonads enough to cut ties with the farm that heinously abused, tortured, raped, etc. those poor pigs. Maybe some investors pulled out because of the bad press. It really would be great if they went "belly up"! Sorry, bad joke.

 

 

 

 

 

Industry News - PM

 

Increased costs, investment loss drop Hormel 4Q earnings

 

 

 

By Ann Bagel Storck on 11/25/2008

 

 

 

 

 

 

 

 

 

 

 

Hit hard by what President and CEO Jeffrey Ettinger called a "unique and challenging economic environment," Hormel Foods on Tuesday announced its fourth-quarter profit dropped 33 percent. Profit in the quarter ended Oct. 26 was $67.8 million, or 50 cents per diluted share, compared with $101.2 million, or 73 cents per share, for the same period a year ago. Sales in the quarter totaled $1.86 billion, up 12 percent from $1.66 billion a year ago. Ettinger blamed "the recent substantial decline in global financial markets" for a negative impact on the Austin, Minn.-based processor's rabbi trust investment performance. Included in the fourth-quarter 2008 results is a $20.4 million loss in that investment, compared with a $4.6 million gain a year ago. Hormel's Grocery Products segment also had what Ettinger termed an "off quarter" despite strong sales of the Spam family of products and

other canned items due to higher beef and pork trim costs and a slowdown of the previously successful Hormel Compleats microwave meals line. Jennie-O Turkey Store suffered in the fourth quarter as well, with operating profit for the segment down 44 percent, due to higher feed and fuel input costs and an industry-wide over-supply of breast meat. Full year For the full year ended Oct. 26, Hormel's net earnings were $285.5 million, or $2.08 per share, compared to $301.9 million, or $2.17 per share, a year ago. Sales for the full year totaled $6.75 billion, compared with $6.19 billion last year. Hormel had already lowered its full-year guidance to $2.03 to $2.09 from its earlier guidance of $2.22 to $2.28 per share. Ettinger credited a "better than expected finish" by Hormel's Refrigerated Foods segment for the fact that the company came in near the high end of its revised guidance range. For fiscal 2009, Ettinger said

Hormel anticipates a "slow start," but with an "opportunity to finish strong in the second half of the year." Its fiscal 2009 guidance range is $2.15 to $2.25 per share. Shares of Hormel were trading at $28.68, down 56 cents, in midday trading on the New York Stock Exchange.