US food manufacturer Hormel Foods has reported 24% higher fiscal 2005 first-quarter earnings, boosted by strong demand for its value-added pork and turkey products.
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The company, which makes canned meat product Spam, reported net earnings of US$64.5m, or 46 cents per share, compared to $51.8m, or 37 cents per share, a year earlier. Sales totalled $1.3bn, up from $1.1bn in fiscal 2004. Volume sales were up 4% percent compared to the year-ago period.
“Our top and bottom lines reflected impressive growth as a result of outstanding demand for our value-added pork and turkey products,” said Joel Johnson, chairman and chief executive officer. “Also, our ability to raise prices within the grocery products segment in June of last year enabled us to recover higher input costs.”
“Several key brands contributed to our success in the quarter, with the standout performance coming from the Jennie-O Turkey Store segment. On top of very good value-added growth in our turkey segment, strong market conditions and decreasing feed costs helped deliver the outstanding results,” added Johnson.
The company said its earnings guidance for the second quarter of fiscal 2005 is in a range of 38 to 44 cents per share. For the full year fiscal 2005, the company is increasing its earnings guidance from a range of $1.65 to $1.75 to a range of $1.70 to $1.80.
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