Hormel Foods tallies fiscal 3q 2009 results

Hormel Foods Corporation has reported its performance for the fiscal year 2009 third quarter.

The company reported fiscal 2009 third quarter net earnings of $77.2 million, up 49% from earnings of $51.9 million a year earlier. Diluted earnings per share for the quarter were $.57 this year compared with $.38 per share in 2008. Sales totaled $1.6 billion, which was down 6% from fiscal 2008. For the nine months ending July 26, 2009, net earnings were $238.9 million, or $1.76 per diluted share, up from $1.58 a year earlier. Sales totaled $4.9 billion, which is even with 2008.

The Refrigerated Foods segment completed an outstanding quarter, with segment operating profits up 60% from a year ago. Foodservice sales continued to be soft, reflecting a weak travel and recreation environment and a continued decline in the restaurant trade.

Total segment operating profit for Jennie-O Turkey Store improved 97% from 2008’s third quarter. Lower feed expenditures due to the reduction of turkey production and a reduced cost per ton were primary drivers of the profitability.

“We are pleased to report improved operating segment results for the quarter. Our Refrigerated Foods segment rebounded to post higher earnings on an enhanced sales mix and lower costs, despite weak cutout margins during much of the quarter. Our Jennie-O Turkey Store segment also showed continued improvement in the quarter,” said Jeffrey M Ettinger, chairman of the board, president, and chief executive officer.

“Sales and volumes were down overall, as we made intentional reductions to our turkey production and the effects of the economy took their toll on certain portions of the business,” Ettinger said.

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