Hormel Sees Annual Profits Rise
US - US-based international meat and food processing giant, Hormel, has reported a rise in annual net earnings of 16 per cent to $474.2 million compared to $409 million last year.
24 November 2011
3 minute read
This annual rise was on the back of a nine per cent rise in sales of $7.9 billion for the financial year to the end of October, which was also a rise of one per cent in volume.
However, the company's fourth quarter saw a three per cent drop in earnings, down to $117.3 million compared to $121.1 million in the fourth quarter of 2010.
At the sme time, sales were up by two per cent on 2010 at $2.1 billion.
Grocery Products operating profit was up by four per cent although was volume flat and dollar sales were up by two per cent.
Refrigerated Foods operating profit was up by six per cent with volume down one per cent and dollar sales up 10 per cent.
Jennie-O Turkey Store operating profit was up by 43 per cent with volume up just one per cent and dollar sales up 12 per cent.
Specialty Foods saw operating profit down by five per cent although volume was up by three percentand dollar sales were up by seven per cent.
Total other operating profit was up by 39 per cent with volume up 13 per cent and dollar sales up 26 per cent.
“I am proud of the team for finishing an outstanding year with a fourth quarter that met our expectations. For the quarter, we are pleased to have generated segment profit increases in four out of five segments and an overall net sales increase. Our tonnage was down in comparison with the 14 week quarter last year, but we held our own on volumes in the face of significant pricing actions,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.
"In looking at the full year, we delivered significant sales growth of 9 percent, ending the year at a record $7.9 billion, with all five segments registering increases. We also grew earnings per share by an excellent 19 percent, finishing at record earnings of $1.74 per share.
"We enjoyed a particularly strong performance by the Jennie-O Turkey Store team, and both our All Other (International) and Refrigerated Foods segments also generated nice profit increases for the year. We enhanced our support of our key HORMEL and JENNIE-O TURKEY STORE brands in fiscal 2011 with effective advertising campaigns, and added to the portfolio of our fast-growing MegaMex Foods joint venture through the acquisition of the WHOLLY GUACAMOLE line and other related products," Mr Ettinger added.
"This morning we announced a $.09 per share increase to the annual dividend (or 17.6 percent), making the new dividend $.60 per share. This marks the 46th consecutive year in which we have increased our dividend, and further evidences our intention to deliver superior total returns to our shareholders," said Mr Ettinger.
