US food group JM Smucker has booked an increase in second-quarter profits and upped its earnings guidance for the full year.
For the three months to the end of October, net profit climbed 7% to US$149.7m. Operating profit rose 4% to reach $240m.
However, net sales remained flat at $1.28bn as volumes declined 4% driven by the company’s US retail oils and baking brands.
“We are pleased to deliver another quarter of strong earnings in this challenging economic environment,” said Tim Smucker, co-CEO. “Our team continues to take a long-term view of our business, focusing on the health of our brands, delivering value to our consumers, and managing the balance between volume growth, share of market gains, and profitability.”
For fiscal 2011, the firm expects net sales to increase in excess of 3% compared to the prior year, primarily due to pricing actions. Income per diluted share is expected to increase to a range of $4.55 to $4.65 from a previous range of $4.50 to $4.60.
Click here to view the full earnings release and check back later for further insight into the firm’s results.