US food manufacturer the J M Smucker Company has reported rises in sales and profit for the year ended 30 April 2005, but restructuring costs meant fourth quarter profit was flat.
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Sales for the year were $2,043.9m, compared to $1,369.6 million the year before. The acquired Multifoods businesses contributed $626.2 million to sales in 2005. Excluding the contribution of Multifoods and the industrial business, which was divested, sales were up 5%.
Net income for 2005 was $129.1m compared to $111.4m last year. Included in net income for 2005 was a loss from discontinued operations of $1.4m. Income from discontinued operations for 2004 was $0.1m.
“We are pleased with our performance for the year. We also remained focused on implementing our core strategy by selling several businesses that were not consistent with owning and marketing leading North American icon food brands sold in the centre of the store,” said Richard Smucker, president and co-chief executive officer.
“In addition, we made significant progress on our integration of the Multifoods businesses and took actions to generate greater supply chain savings in order to position us for improved profitability.”
Company sales were $491.5m for the fourth quarter compared to $312.4 million in the fourth quarter of 2004. The acquired Multifoods businesses contributed $154.1m to sales in the fourth quarter of 2005.
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By GlobalDataSales growth and improved margins on the Company’s existing business and the addition of Multifoods were mostly offset by merger and integration costs, an increase in restructuring expenses, start-up costs at the Company’s Uncrustables facility in Scottsville, Kentucky, and an increase in interest expense over the fourth quarter of last year.
“Once again, our Smucker’s, Jif and Crisco brands experienced good sales growth in the quarter, and the addition of the brands we acquired from Multifoods enhanced our performance,” said Tim Smucker, chairman and co- chief executive officer. “For the year, the strong performance of our brands enabled us to absorb the startup costs at our new Uncrustables facility and still achieve record earnings. We have positive momentum for the new year and are well-positioned to continue to grow profitably.”
Net income for the fourth quarter of 2005 was down slightly to $22.1m compared to last year’s fourth quarter net income of $22.2m. Included in this quarter’s net income was a loss from discontinued operations of $4.7m compared to earnings from discontinued operations last year of $1.1m.
