Food products maker J.M. Smucker Co. (SJM: Quote) reported Friday a slight decline in first-quarter profit, reflecting higher commodity costs, despite a 15 percent increase in net sales. Net income, excluding special project costs, and revenues topped Wall Street Expectations.
The company said it expects to report fiscal 2013 adjusted income per share at the upper end of its estimate range, which is in line with analysts view.
Net sales increased 4 percent in U.S. Retail Coffee segment and 15 percent in U.S. Retail Consumer Foods. Net sales in International, Foodservice, and Natural Foods surged 40 percent from last year.
Overall volume, excluding acquisition, rose 2 percent, mainly driven by Jif peanut butter and Folgers coffee.
Vince Byrd, president and chief operating officer said the company believes it is well-poised for the important back-to-school and holiday seasons and for another successful year of growth.
In the first quarter, the company's net income declined to $110.86 million from $111.52 million in the previous year. However, on a per share basis, net income rose to $1.00 from $0.98 in the year-ago quarter.
The company said results for the recent quarter ended July 31, 2012, included operations of the North American foodservice coffee and hot beverage business acquired from packaged foods firm Sara Lee Corp. (SLE), since the completion of acquisition on January 3, 2012.
Net income, excluding special project costs, for the quarter rose to $1.17 per share. In the prior-year quarter, adjusted earnings were $1.12 per share. On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.00 per share for the quarter. Analysts' estimates typically exclude special items.
According to the company, special project costs related to restructuring, merger and integration, and certain pension settlement.
Net sales for the quarter grew 15 percent to $1.37 billion, which came above analysts' consensus estimate of $1.30 billion. The net sales increase included contribution of $86.7 million from the acquired Sara Lee foodservice business and a growth in volumes.
Excluding special project costs, operating margin was 15.9 percent, compared to 17.3 percent in the preceding year.
For fiscal year 2013, the company still expects adjusted income per share in the range of $5.00 to $5.10, excluding special project costs of nearly $0.50 per share. Based on current expectations, the company believes the non-GAAP income per share should be at the higher end of its estimate range.
J.M. Smucker continues to expect net sales for the fiscal to increase about 7 percent from last year's $5.53 billion, including an incremental eight-month contribution from the Sara Lee foodservice business. Analysts expect the company to earn $5.10 per share, on revenues of $5.89 billion, for fiscal 2013.
SJM closed Thursday's regular trading at $78.97 on the NYSE. In the pre-market activity, the shares are up 2.32 percent.
| || |
| To receive FREE breaking news email alerts for The J. M. Smucker Company and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com