US food group Hormel Foods has booked a drop in first-half net earnings as sales and profits declined in its grocery products division.
For the six months ended 29 April, profits dropped 0.8% to US$256.3m, the firm reported today (23 May). Operating profits slid 4.3% to $390.7m.
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Sales, however, totalled $4.0.5bn, up 4% from the same period last year. In the firm’s grocery products division, sales dropped 0.7% to $533.5m, while operating profits slid 0.8% to $86.9m.
“We are pleased to report record earnings and sales for the second quarter. This is a good example of our balanced business model in action, as we were able to increase earnings in four out of five segments.” said president and CEO Jeffrey Ettinger.
In the second quarter, net earnings were up 17% to $127.9m, while operating profits climbed 12.7% to $194.7m. Sales for the quarter were $2bn, up 3% from fiscal 2011.
Looking forward, Ettinger said: “Our second quarter results provide positive momentum heading into the back half of the year. We believe continued weaker pork operating margins will be more than offset by stronger results from our other segments.”
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