UPDATE: Smucker Posts Upbeat Q3 Profit, Sales Decline

reported better-than-expected earnings for the fiscal third quarter. The Orrville, Ohio-based company posted quarterly net income of $160.9 million, or $1.58 per share, compared to $166.7 million, or $1.59 per share, in the year-ago quarter. Its adjusted earnings came in at $1.54 per share. Its sales slipped 2% to $1.44 billion. However, analysts were expecting earnings of $1.51 per share on revenue of $1.49 billion. Net sales for the U.S. Retail Consumer Foods segment dropped 2% in the third quarter, while sales in the International, Foodservice, and Natural Foods segment fell 3%. The U.S. Retail Coffee segment net sales shrank 1% in the quarter. Operating income dropped 3% y/y in the quarter, while gross profit shrank $22.3 million y/y in the quarter. "While we are pleased with the momentum in many of our businesses, our U.S. Retail Coffee business continued to be challenged, which impacted our third quarter performance. In the near term, we expect results for the coffee segment to remain soft reflecting continued competitive dynamics, which we are addressing responsibly to ensure the long-term health of our brands," said Richard Smucker, Chief Executive Officer. Smucker now projects full year U.S. Retail Coffee segment profit to drop by around 15% versus the previous year. The company projects full-year earnings to be below the midpoint of its prior outlook of $5.45 to $5.65 by around 3% Smucker shares rose 1.02% to close at $112.39 yesterday.