Hormel Foods Corporation (NYSE:HRL), a multinational marketer of consumer-branded meat and food products, today said it expects its third quarter earnings to be $0.40 - $0.42 per share, down from a previous range of $0.42 - $0.48 per share.
“Higher than expected input costs (beef, pork, chicken) within our Grocery Products segment was the primary reason for the short-fall in our third quarter results,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “While we implemented a price increase in our Grocery Products segment at the beginning of the quarter, it was not enough to off-set the higher input costs. We still expect the Grocery Products segment results to be comparable to last year and all of the other segments to meet expectations,” Ettinger stated.
“In the fourth quarter, we expect to see earnings pressure from higher input costs. For this reason, we are issuing fourth quarter guidance in a range of $0.62 - $0.68 per share, and updating the full year to $2.05 - $2.13 per share, down from $2.12 - $2.22 previously announced. We will provide more details regarding the quarter and outlook during our conference call on August 23 at 9:30 a.m. CT,” Ettinger concluded.
ABOUT HORMEL FOODS CORPORATION
Hormel Foods Corporation, based in Austin, Minn., is a multinational manufacturer and marketer of consumer-branded food and meat products, many of which are among the best known and trusted in the food industry. The company leverages its extensive expertise, innovation and high competencies in pork and turkey processing and marketing to bring quality, value-added brands to the global marketplace. For each of the past eight years, Hormel Foods has been named one of “The Best Big Companies in America” by Forbes magazine. The company enjoys a strong reputation among consumers, retail grocers, foodservice and industrial customers for products highly regarded for quality, taste, nutrition, convenience and value. For more information, visit www.hormel.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding Forward-Looking Statements that appear on pages 26-31 in the company’s Form 10-Q for the quarter ended April 29, 2007, which can be accessed at www.hormel.com under “Investor-SEC Filings.”
Contacts:
Investor Contact:
Fred Halvin,
507-437-5007
fdhalvin@hormel.com
or
Media
Contact:
Julie Craven, 507-437-5345
jhcraven@hormel.com
