US: Hillshire income drops, forecasts flat FY sales

By Michelle Russell | 9 August 2012

  • Reported operating segment income down 9%
  • Net sales up 1.9%
Hillshire reported a 9% drop in reported operating segment income

Hillshire reported a 9% drop in reported operating segment income

Hillshire Brands has forecast flat sales for the new fiscal year and operating segment to be "flat to down" as it booked a drop in full-year operating income.

Hillshire, the North American meat division spun off from Sara Lee, today (9 August) reported a 9% drop in reported operating segment income to US$351m in the year ended 30 June.

Earlier this month, the company said accounting irregularities would have an impact on its financial statements for fiscal 2009 through 2011, and for the first three quarters of fiscal 2012. It should have no effect on fiscal 2013, it added.

Net sales were up 1.9% to $4.09bn. Retail adjusted net sales increased 4.5%, while organic sales growth was 0.7%, driven primarily by pricing which was offset by lower volume and discounts to move aged inventory.

The company did not report earnings for the fourth quarter or full-year, due to the need to restate historical results to reflect accounting irregularities at discontinued operations.

For fiscal 2013, Hillshire forecast adjusted earnings of $1.40 to $1.55 per share.

Sales, the company said, are expected to be "roughly in line with fiscal 2012 on a dollar basis", while adjusted operating segment income is expected to be "flat to modestly down" as a result of investments behind higher brand support and innovation.

Sectors: Financials, Meat & poultry

Companies: Sara Lee

View next/previous articles

Currently reading -

US: Hillshire income drops, forecasts flat FY sales

There are currently no comments on this article

Be the first to comment on this article

Related research

Hillshire Brands Co in Packaged Food (World)

Hillshire Brands is the result of a spin-off by Sara Lee to create two independent publically traded companies. Hillshire Brands is a “meat-centric” packaged food player, which focuses on its key brands Jimmy Dean and Hillshire Farm. It also maintain...

Meat (Fresh and Processed)

This report analyzes the worldwide markets for Meat (Fresh And Processed) in Thousands of Tons by the following Product Segments: Pork, Lamb & Goat, Beef & Veal, and Poultry. The report provides separate comprehensive analytics for the US, Canada, Ja...

Related articles

US: Flowers delays guidance on M&A outcome

US baker Flowers Foods has delayed issuing guidance for 2013 until the outcome of its attempt to buy various assets, including bread operations from Hostess Brands, is clear.

just-food's outlook for 2013: Mega deals unlikely as consolidation continues

There may be caution over the prospect for blockbuster deals in a dilapidated economic environment, but the food sector mergers and acquisitions table still has plenty to whet the appetite.

US: Hillshire Brands poaches Kraft exec for strategy VP role

Hillshire Brands has announced that Brian Davison has joined the company from Kraft Foods as VP of corporate strategy and development.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page