(RTTNews) - Meat producer Hormel Foods Corp. (HRL: News ) is scheduled to announce its fourth-quarter results before the market opens Tuesday. On average, analysts polled by Thomson Reuters expect a profit of $0.68 per share on sales of $1.82 billion. Analysts' forecast typically excludes one-time items.

For the year-ago fourth quarter, the company's earnings were $0.50 per share on sales of $1.86 billion.

Cash-strapped consumers have scaled back on costs during the recession by eating more at home than at restaurants. Hormel has benefited from the recession as its value-priced items like Spam family of products and Dinty Moore canned stews continue to appeal to budget-conscious consumers because of their low costs.

The company in August reported a 49% surge in its profit for the sequential third quarter from last year, helped by an increase in earnings at its refrigerated foods segment, improved results at its Jennie-O Turkey Store segment and lower costs. The results for the third quarter also benefited from better investment performance in the company's rabbi trust.

The Austin, Minnesota-based company's net income for the third quarter increased to $77.17 million, or $0.57 per share, from $51.95 million, or $0.38 per share, in the prior-year quarter. Net sales for the quarter were $1.57 billion, down 6% from $1.68 billion in the prior-year quarter.

Volume for the third quarter was down 4% from the prior-year period. Sales and volume were lower as the company made intentional reductions to its turkey production, while the effect of the economy took its toll on certain portions of the business.
For fiscal 2009, Hormel continues to see earnings in the range of $2.36-$2.42 per share. Analysts expect the company to report earnings of $2.44 per share for the year. Hormel had raised its earnings forecast for the year in early August, citing stronger-than-expected results for the third quarter. Previously, the company projected full-year earnings in a range of $2.15-$2.25 per share.

Among others in the sector, Kraft Foods Inc. (KFT: News ), the world's second largest food company, recently reported that its third-quarter profit fell 39.5% from last year, when results were boosted by huge gains from divestiture of discontinued operations.

The Northfield, Illinois-based Kraft Foods reported net income for the third quarter of $824 million or $0.55 per share, compared to $1.4 billion or $0.91 per share for the year-ago quarter. Earnings per share from continuing operations were $0.55, compared to $0.34 in the prior-year quarter.

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