US food group Hormel Foods has raised its full-year profit target despite seeing second-quarter earnings fall more than 3% on one-off charges.
The company booked net income of US$77.9m for the three months to 25 April, down from $80.4m a year earlier.
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Hormel said costs linked to the closure of its Valley Fresh plant and the tax impact of the new US healthcare laws had weighed on earnings. Excluding these costs, Hormel’s net earnings rose 14%.
Stripping out the one-off costs, Hormel raised its full-year earnings guidance from $2.68 to $2.78 per share to $2.75 to $2.85 per share.
“We are pleased to report excellent earnings and sales for the quarter,” said Jeffrey Ettinger, Hormel’s chairman of the board and CEO.
“This quarter demonstrated the value of our balanced model, as our Jennie-O Turkey Store and Specialty Foods segments more than made up for the more difficult quarter experienced by our grocery products segment due to increased raw material costs.”
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By GlobalDataAdjusted segment operating profit rose 14% to $156.1m. Sales for the quarter totaled $1.7bn, up 7%.
Click here to view the full release and click here for chairman and CEO Jeffrey Ettinger’s comments on Hormel’s outlook for the rest of its financial year.
