AUSTIN, Minn. (AP) - Hormel Foods Corp., the maker of Spam canned meat and Jennie-O Turkey, said on Friday that first-quarter profit rose 8.7 percent despite a sharp run-up in grain prices that hurt turkey profits.
Austin-based Hormel said it earned $75.33 million, or 54 cents per share, during the quarter that ended Jan. 28, up from $69.28 million, or 50 cents per share, during the same period last year. Revenue of $1.5 billion was up 6.2 percent from $1.42 billion a year ago.
The profits matched the estimate of analysts surveyed by Thomson Financial, and the revenue was slightly ahead.
"The sharp rise in grain markets has added a new dynamic to our business and to the food industry in general. We anticipate higher grain costs will continue to burden our turkey operation and we are working hard to find ways to offset this extra expense," including price increases, Chairman and Chief Executive Jeffrey M. Ettinger said in a prepared statement.
The company left its 2007 earnings guidance of $2.15 to $2.25 in place, and said it expects to earn 47 cents to 53 cents per share during the second quarter. Analysts are expecting 51 cents for the quarter and $2.19 for the year.
ADVERTISEMENT
___
On the Net:
Hormel Foods Corp.: http://www.hormel.com/
