Hormel Foods Revises Outlook for Fiscal Year 2008
AUSTIN, Minn. | October 20, 2008
Hormel Foods Corporation (NYSE: HRL), a multinational marketer of consumer-branded meat and food products, today said it is lowering its expectation for fiscal 2008 earnings.
“The recent decline in global financial markets has negatively impacted our rabbi trust investment performance. This is one factor that will prevent us from reaching the earnings range articulated in our third quarter conference call,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “Although we correctly anticipated a significant shortfall in earnings at Jennie-O Turkey Store during the fourth quarter, we are also experiencing greater than expected cost pressures and unfavorable product mix changes in our Grocery Products and Refrigerated Foods segments. Given the current investment results for the rabbi trust and our expected operating results for fiscal 2008, we are lowering our full year guidance to $2.03 to $2.09 per share from our earlier guidance range of $2.22 to $2.28 per share. However, we expect to beat fiscal year 2007 results for the full year on a segment operating profit basis.”
“We will provide more details regarding the current quarter and the 2009 outlook during our conference call on Tuesday, Nov. 25, 2008 at 8:30 a.m., CT,” Ettinger concluded.
ABOUT HORMEL FOODS CORPORATION
Hormel Foods Corporation, based in Austin, Minn., is a multinational manufacturer and marketer of consumer-branded food and meat products, many of which are among the best known and trusted in the food industry. The company leverages its extensive expertise, innovation and high competencies in pork and turkey processing and marketing to bring quality, value-added brands to the global marketplace. For each of the past nine years, Hormel Foods has been named one of “The Best Big Companies in America” by Forbes magazine. The company enjoys a strong reputation among consumers, retail grocers and foodservice customers for products highly regarded for quality, taste, nutrition, convenience and value. For more information, visit www.hormelfoods.com
This news release contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding Forward-Looking Statements and Risk Factors that appear on pages 26-31 in the company’s Form 10-Q for the quarter ended July 27, 2008, which can be accessed at www.hormelfoods.com under “Investors-SEC Filings.”