UPDATE: J.M. Smucker FQ1 Profit Misses Street View

The J.M. Smucker Company

reported weaker-than-expected fiscal first-quarter earnings. The Orrville, Ohio-based company posted a quarterly profit of $116 million, or $1.14 per share, versus a year-ago profit of $126.6 million, or $1.19 per share. Excluding non-recurring items, Smucker's adjusted profit came in at $1.34 per share. Its sales dropped 2% to $1.32 billion. However, analysts were expecting earnings of $1.37 per share on revenue of $1.37 billion. Smucker projects full-year sales to rise at a rate slightly less than the 5% provided at the beginning of the year. However, the company affirmed its adjusted EPS forecast of $5.95 to $6.05. Sales at the US Retail Coffee segment fell 2% to $502.7 million, while sales at the US Retail Consumer Foods segment declined 3% to $522.8 million. Net sales in the International, Foodservice, and Natural Foods segment dropped 1% to $298.3 million. Selling, distribution, and administrative expenses rose 1% in the quarter, while operating income dropped $21.7 million. Net interest expense fell $6.4 million in the quarter, while income taxes fell $3.4 million in the quarter. Richard Smucker, Chief Executive Officer said, "Our team continues to focus on profitably building our brands, driving innovation, and optimizing our supply chain. There is little doubt that the operating environment is challenging. However, our brands are well positioned to perform in this competitive market." Smucker shares gained 0.31% to close at $103.45 yesterday.