Hormel Foods Pre-Announces Third Quarter Earnings and Provides Outlook for Full Fiscal Year
Aug 8, 2008
Austin, Minn. – Hormel Foods Corporation (NYSE:
HRL), a multinational marketer of consumer-branded meat and food
products, today said it expects its third quarter earnings to be $.37 -
$.39 per share, compared with $.41 per share in the third quarter last
year.
"Higher than expected feed and fuel input
costs at our Jennie-O Turkey Store segment were the primary reason for
the shortfall in our third quarter results," said Jeffrey M. Ettinger,
chairman of the board, president and chief executive officer. "While we
have continued to implement price increases in this segment, they have
not been adequate to offset the higher input costs. An
oversupply of turkey breast meat also kept pricing of commodity breast
meat at a low level, exacerbating the cost-price
differential."
"In the fourth quarter, we expect
to see continued earnings pressure at Jennie-O Turkey Store from higher
input costs, as the birds fed with higher grain prices make their way
through the system. We are adjusting our full year guidance
to $2.22 - $2.28 per share, which is above our results of $2.17 per
share last year ($2.14 excluding the sale of assets in the fourth
quarter of 2007). Our previous guidance was $2.30 - $ 2.40 per share.
We will provide more details regarding the quarter and outlook during
our conference call on August 21, 2008 at 9:00 a.m. CT," Ettinger
concluded.
ABOUT HORMEL FOODS CORPORATION
Hormel
Foods Corporation, based in Austin, Minn., is a multinational
manufacturer and marketer of consumer-branded food and meat products,
many of which are among the best known and trusted in the food
industry. The company leverages its extensive expertise, innovation and
high competencies in pork and turkey processing and marketing to bring
quality, value-added brands to the global marketplace. For each of the
past nine years, Hormel Foods has been named one of “The Best Big
Companies in America” by Forbes magazine. The company enjoys a strong
reputation among consumers, retail grocers, foodservice and industrial
customers for products highly regarded for quality, taste, nutrition,
convenience and value. For more information, visit www.hormelfoods.com.
FORWARD-LOOKING STATEMENTS
This
news release contains forward-looking information based on management’s
current views and assumptions. Actual events may differ
materially. Please refer to the cautionary statement
regarding Forward-Looking Statements and Risk Factors that appear on
pages 25-30 in the company’s Form 10-Q for the quarter ended April 27,
2008, which can be accessed at www.hormelfoods.com
under “Investors-SEC Filings.”
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