Hormel Foods posts Q3 decline

Source: Food and Drink Digital

Date :8/21/2008 11:43:31 PM

Hormel Foods Corp has reported that Q3 net earnings were down nine percent to US$51.9 million, from US$57.4 million a year earlier.

Jeffrey M. Ettinger (pictured), Chairman, President and CEO, said that its Jennie-O Turkey Store saw operating profit fall 61 percent, due to higher feed input and fuel costs.

Flat results in its refrigerated foods division was attributed to the challenging quarter.

“We continue to generate strong top-line growth in both dollar sales and volume across all five of our operating segments,” added Ettinger.

Meanwhile, specialty foods saw dollar sales up 14 percent and operating profit increase by 20 percent. Gains in this unit were driven by higher contract manufacturing volumes.

According to Ettinger, the company expects to see continued earnings pressure at Jennie-O Turkey Store as higher grain prices have a knock-on effect.