A hike in input costs has forced US-based Hormel Foods to lower its profit guidance for its fiscal third quarter.
The company warned that third-quarter earnings per share would fall to US$0.40-0.42, down from a range of $0.42-0.48.
“Higher than expected input costs [for] beef, pork, and chicken within our grocery products segment was the primary reason for the short-fall in our third quarter results,” said Hormel president and CEO Jeffrey Ettinger.
Ettinger added that Hormel had increased the prices of its grocery products but admitted the price hike had failed to offset the rising raw material costs.
Hormel will publish its third-quarter figures on 23 August.