Tags: Hormel | drought | grain | outlook

Hormel Keeps Full-Year Outlook Despite Higher Grain Costs

Thursday, 23 August 2012 11:15 AM

Hormel Foods Corp. stood by its full-year earnings outlook on Thursday despite pressure from higher grain costs.

The company also reported a higher quarterly profit that met Wall Street estimates as it benefited from gains across its businesses, which include Spam canned ham, Hormel meats and Jennie-O turkeys.

The worst drought in more than half a century in the U.S. Midwest has scorched corn and soybean crops while driving up prices of wheat and other grains. This has fueled a spike in corn costs that is pressuring livestock producers by making feed more expensive.

Although higher costs will be a challenge, Hormel said, it expects continued sales and earnings growth this year because of its balanced business model.

It said it still expected a full-year profit of $1.79 to $1.89 per share. Analysts on average are expecting $1.85, according to Thomson Reuters I/B/E/S.

Hormel's earnings rose to $111.2 million, or 41 cents per share, in the third quarter ended on July 29 from $98.5 million, or 36 cents per share, a year earlier.

Net sales rose 5 percent to $2 billion, in line with Wall Street estimates.

The grocery products segment, which reported a 32 percent jump in operating profit, benefited from strong sales of Spam.

The company's shares were up 0.9 percent at $28.68 in early trading.

© 2020 Thomson/Reuters. All rights reserved.


   
1Like our page
2Share
218
2012-15-23
Thursday, 23 August 2012 11:15 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved