Austin-based Hormel Foods has lowered its fiscal 2008 profit outlook due to weaknesses in the global financial markets and higher costs.

 

"The recent decline in global financial markets has negatively impacted our rabbi trust investment performance," Jeffrey M. Ettinger, chairman, president and chief operating officer, said in a statement today (20 October).

 

Hormel said that its business had also felt the negative impact of higher-than-expected costs, an unfavourable product mix in its grocery and chilled food segments and an expected earnings shortfall at its Jennie-O Turkey Store unit.

 

Hormel cut its full-year profit guidance to a range of US$2.03 to $2.09 per share, from a previous forecast of $2.22-$2.28 per share.

The company said it will provide more details on the fourth quarter and outlook for 2009 during its conference call on 25 November.