US food group Sara Lee lifted its target for annual earnings today (4 February) after one-off items and improved second-quarter volumes boosted half-year profits.
Sara Lee said it now expects full-year 2010 adjusted earnings per share to be in the range of
$1.00 to $1.05 a share – compared to its previous target of $0.91 to $1.05 a share.
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The group posted second-quarter operating income of $282m, which had swung from an operating loss of $4m a year ago.
Net income stood at $371m in the second quarter against a $17m net loss last year.
Sara Lee is part-way through a programme to cut costs through outsourcing, making its supply chain more efficient and cutting its product portfolio.
The programme, dubbed Project Accelerate, is set up to create $75-100m in “incremental benefits” in Sara Lee’s current fiscal year. In the first half of the year, Sara Lee said the initiatives had brought in $48m.
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By GlobalDataNet sales for the second quarter of were $2.9bn, unchanged on a year earlier as favorable foreign exchange were offset by the impact of disposals, lower unit volumes and lower selling prices.
The company’s adjusted net sales decreased 2.7%.
For the first six months to 26 December, Sara Lee’s net sales fell 3.6% to $5.4bn. Adjusted net sales dropped 3%. Operating income was $607m, compared to $289m a year earlier. Net income reached $615m, compared to $213m a year ago.
For the complete Sara Lee earnings statement, click here. Check back later for coverage from Sara Lee’s earnings call.
