J.M. Smucker Co., the maker of Folgers coffee and Jif peanut butter, raised its full-year earnings forecast after reporting a better-than-expected quarterly profit due to lower coffee and peanut input costs.
The company, however, said it expected full-year sales to fall about 1 percent from $5.9 billion in fiscal 2013 as it cut the prices of its coffee and peanut butter over the past year.
Prices of green coffee have declined over the past 18 months. December Arabica coffee futures on ICE were up 0.3 cent at $1.1910 per pound, but are still close to June's four-year low of $1.1815 per pound.
Smucker forecast a full-year adjusted profit of $5.72 to $5.82 per share, higher than its previous forecast of $5.65 to $5.75 per share.
Analysts on average were expecting a profit of $5.79 per share on revenue of $5.88 billion, according to Thomson Reuters I/B/E/S.
The Orrville, Ohio-based company also said it acquired privately held Enray Inc., a maker of gluten-free pasta and cookies, but did not disclose the terms of the deal. Enray generated $45 million over its latest 12-month period.
The acquisition includes a leased manufacturing facility in Livermore, California.
Smucker's net income rose 14 percent to $126.6 million, or $1.19 per share, in the quarter ended July 31 from $110.9 million, or $1 per share, a year earlier.
Excluding items, the company earned $1.24 per share, 4 cents above Wall Street estimates.
Net sales fell 1 percent to $1.35 billion in the first quarter but were slightly above average analysts' estimates of $1.34 billion.
Overall volumes increased 1 percent, driven by a 4 percent rise in volumes in the company's U.S. retail coffee and consumer foods businesses.
Smucker sells Folgers and Dunkin' Donuts packaged coffee under its retail coffee business and Jif peanut butter and Crisco oils in the retail consumer foods division.
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