AUSTIN, Minn. – Hormel Foods Corp. lowered its full-year guidance for fiscal 2013 because of higher costs and weak performances by the company’s pork and refrigerated retail sales segments.
Shares for the company declined on news the company reduced its projected full-year earnings from $1.93 - $2.03 per share to $1.88 - $1.96 per share.
“Lower than expected results in our pork operations, higher input costs and softer sales of our retail products in our Refrigerated Foods segment are the primary reason for the expected shortfall in our second half results,” said Jeffrey M. Ettinger, chairman of the board, president and CEO. “We remain very bullish about our future earnings potential. We will provide more details regarding the outlook during our Investor Day on June 26, 2013.”
In May, the company reported a 2 percent decline in earnings during the second quarter. For the quarter ended April 28, the company had earnings of $125,520,000, equal to 47 cents per share on the common stock, which compared with income of $127,887,000, or 49 cents per share, during the same quarter of the previous year.
The company attributed the performance to weak results in the Jennie-O Turkey Store segment and costs related to the Skippy acquisition.
However, sales for the quarter were $2,152,686,000, up 7 percent from $2,012,859,000 during the same quarter of the previous year.