UPDATE: Hormel Posts Downbeat FQ2 Earnings

Hormel Foods

reported a 12% gain in its fiscal second-quarter earnings. Hormel's quarterly profit surged to $140.1 million, or $0.52 per share, versus a year-ago profit of $125.5 million, or $0.46 per share. Its sales increased 4.3% to $2.24 billion, while volume declined 1%. However, analysts were expecting earnings of $0.56 per share on revenue of $2.24 billion. Hormel's gross margin widened to 16.9% versus 16.4%. Hormel's sales at the refrigerated-foods business climbed 9.9%, while operating profit surged 38%. The company's grocery-products sales dropped 0.4%, while profit increased 16%. Sales at Jennie-O Turkey Store declined 1%, while operating profit rose 2%. Specialty Foods sales tumbled 12%, while operating profit fell 26%. Hormel's international & other sales jumped 23%, while operating profit climbed 34%. Jeffrey M. Ettinger, chairman of the board, president and chief executive officer said, “Our team achieved a record second quarter both in terms of dollar sales and earnings per share.” The executive continued, “We improved operating profit margins on a total company basis and in four of our five segments.” Hormel maintained its FY14 earnings forecast of $2.17 to $2.27 per share. Hormel shares dipped 1.10% to close at $48.53 yesterday.