US: Hillshire income drops, forecasts flat FY sales
- Reported operating segment income down 9%
- Net sales up 1.9%
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.
Hillshire Brands has agreed to sell its Australia and New Zealand bakery business, Kitchens of Sara Lee, to McCain Foods....
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