Hershey Foods Corporation (NYSE: HSY) today announced sales and earnings for the first quarter ended April 1, 2001. Consolidated net sales for the first quarter were $1,080,281,000 compared with $993,115,000 for the first quarter of 2000, an increase of 8.8 percent. Net income was $78,906,000, or $.57 per share diluted, compared with $71,180,000, or $.51 per share diluted for the first quarter of 2000, an increase of 11.8 percent. The first quarter 2000 earnings per share benefited from a $.03 per share, one-time gain on the sale of corporate aircraft.
“We’ve gotten off to a good start in 2001,” said Richard H. Lenny, President and Chief Executive Officer. “Our sales at retail continue to outpace the category as a result of our successful seasonal programs, in-store merchandising, and improved customer service.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“The integration of the newly acquired intense mints and gum businesses has gone smoothly. In addition to the incremental earnings from these businesses, we benefited from improved logistics and commodities costs, as well as other operating efficiencies, offset somewhat by higher marketing expense.
“As we go through the year, we plan to maintain momentum in our core business, while introducing value-added new products and continuing to improve our margins. We expect 2001 to be a record year for Hershey Foods, and we are working diligently to make that happen,” Lenny concluded.
SAFE HARBOR STATEMENT
This release contains statements which are forward-looking. These statements are made based upon current expectations which are subject to risk and uncertainty. Actual results may differ materially from those contained in the forward-looking statements. Factors which could cause results to differ materially include, but are not limited to: changes in the confectionery and grocery business environment, including actions of competitors and changes in consumer preferences; changes in governmental laws and regulations, including taxes; market demand for new and existing products; the Corporation’s ability to implement improvements to and reduce costs associated with the Corporation’s distribution operations; and changes in raw material costs, as discussed in the Corporation’s Annual Report on Form 10-K for 2000.
Hershey Foods Corporation
Summary of Consolidated Statements of Income
for the period ended April 1, 2001 and April 2, 2000
(in thousands of dollars except per share amounts)
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData First Quarter
2001 2000
Net Sales $1,080,281 $993,115
Costs and Expenses:
Cost of Sales 637,506 605,097
Selling, Marketing and Administrative 298,619 253,800
Total Costs and Expenses 936,125 858,897
Income Before Interest and Income Taxes 144,156 134,218
Interest Expense, Net 17,297 17,530
Income Before Income Taxes 126,859 116,688
Provision for Income Taxes 47,953 45,508
Net Income $78,906 $71,180
Net Income Per Share – Basic $.58 $.51
– Diluted $.57 $.51
NOTE: Net Income Per Share – Basic and Diluted have been computed
based on the provisions of Statement of Financial Accounting
Standards No. 128 Earnings per Share. Basic shares outstanding
for the first quarter of 2001 were 136,750,000 compared with
138,455,000 for the first quarter of 2000. Diluted shares
outstanding for the first quarter of 2001 were 138,227,000
compared with 139,216,000 for the first quarter of 2000.
Hershey Foods Corporation
Consolidated Balance Sheets
as of April 1, 2001 and December 31, 2000
(in thousands of dollars)
Assets 2001 2000
Cash and Cash Equivalents $26,254 $31,969
Accounts Receivable – Trade (Net) 308,519 379,680
Deferred Income Taxes 76,463 76,136
Inventories 624,805 605,173
Prepaid Expenses and Other 84,261 202,390
Total Current Assets 1,120,302 1,295,348
Net Plant and Property 1,574,013 1,585,388
Intangibles Resulting
from Business Acquisitions 466,758 474,448
Other Assets 140,330 92,580
Total Assets $3,301,403 $3,447,764
Liabilities and Stockholders’ Equity
Loans Payable $50,233 $258,123
Accounts Payable 147,936 149,232
Accrued Liabilities 330,487 358,067
Taxes Payable 44,620 1,479
Total Current Liabilities 573,276 766,901
Long-Term Debt 877,510 877,654
Other Long-Term Liabilities 322,570 327,674
Deferred Income Taxes 297,224 300,499
Total Liabilities 2,070,580 2,272,728
Total Stockholders’ Equity 1,230,823 1,175,036
Total Liabilities and Stockholders’ Equity $3,301,403 $3,447,764
