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Hormel Foods Reports Record Second Quarter Results

Performance
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May 21, 2014

Austin, Minn.

Hormel Foods Corporation (NYSE: HRL) today reported its performance for the fiscal year 2014 second quarter.

All comparisons are to the second quarter of fiscal 2013.

HIGHLIGHTS

Second Quarter

  • Record diluted EPS of $0.52, up 13 percent from $0.46 per share
  • Segment operating profit increased 14 percent
  • Record dollar sales of $2.2 billion, up 4 percent; volume down 1 percent
  • Grocery Products operating profit up 16 percent; volume up 1 percent; dollar sales flat
  • Refrigerated Foods operating profit up 38 percent; volume flat; dollar sales up 10 percent
  • Jennie-O Turkey Store operating profit up 2 percent; volume down 5 percent; dollar sales down 1 percent
  • Specialty Foods operating profit down 26 percent; volume down 14 percent; dollar sales down 12 percent
  • International & Other operating profit up 34 percent; volume up 26 percent; dollar sales up 23 percent

The company reported fiscal 2014 second quarter net earnings of $140.1 million, up 12 percent from net earnings of $125.5 million a year earlier. Diluted earnings per share for the quarter were $0.52, up 13 percent compared to $0.46 last year. Sales for the quarter were $2.2 billion, up 4 percent from the same period in fiscal 2013.

COMMENTARY
“Our team achieved a record second quarter both in terms of dollar sales and earnings per share,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “We improved operating profit margins on a total company basis and in four of our five segments.”

“Beneficial pork operating margins and growth in our value-added foodservice business drove our Refrigerated Foods segment results. Our Grocery Products and International segments continued to deliver distribution gains with SKIPPY® peanut butter this quarter,” commented Ettinger. “Favorable turkey commodity markets and growth in value-added product sales helped to mitigate lower live production results in our Jennie-O Turkey Store segment,” stated Ettinger.

Click here to view the full report.

About Hormel Foods

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 branded, value-added products to the global marketplace. The company is a member of the Standard & Poor’s (S&P) 500 Index, S&P Dividend Aristocrats for 2013, was named the 2013 Sustainable Supply Chain of the Year by Refrigerated & Frozen Foods magazine, and was again named one of “The 100 Best Corporate Citizens” by Corporate Responsibility Magazine for the sixth year in a row. Hormel Foods was been recognized on the G.I. Jobs magazine list of America’s Top 100 Military Friendly Employers in 2012 and 2013, and named one of the 2014 40 Best Companies for Leaders by Chief Executive magazine. The company enjoys a strong reputation among consumers, retail grocers, foodservice and industrial customers for products highly regarded for quality, taste, nutrition, convenience and value. For more information, visit www.hormelfoods.com.

FORWARD-LOOKING STATEMENTS

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 on pages 28 – 35 in the company’s Form 10Q for the quarter ended January 26, 2014, which can be accessed at www.hormelfoods.com under “Investors-SEC Filings.”