US frozen pie and chilled meats firm Hillshire Brands saw its earnings fall in its first quarter as input cost inflation weighed on profits.
In the three months ended 28 September, earnings slumped to US$29m from $49m in the prior year period. Operating profit was down 35.2% to $55m.
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The declines reflected “significant” input cost inflation in the quarter and unusually low SG&A expenses in the prior year, the company said.
Net sales, however, edged up 1% to $984m.
The company said it continues to forecast material input cost inflation through the remainder of the first half of fiscal 2014. Despite this, it continues to expect an improvement in margins in the second half and continued progress on cost initiatives. As a result, it maintained its full year guidance of a slight increase in sales and flat to down mid-single digit adjusted earnings per share.
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