A holiday thank-you; Hormel Foods shares record $17.4M in profits with workers
Published 10:38 am Wednesday, November 26, 2014
Bill Hines-McClain looks for Maxine Westphal’s profit-sharing check during distribution Wednesday morning at the Hormel Foods plant. — Photos by Eric Johnson/photodesk@austindailyherald.com
It’s a very happy holiday for Hormel Foods Corp. workers.
Hormel will give $17.4 million to workers as part of its annual profit sharing tradition.
“As plant manager, I’m happy that they do that,” Tim Fritz, manager of the Austin plant, said Wednesday morning. “Without [workers’] hard work, that doesn’t happen, and it allows me to get up there and thank them for that effort.”
Hormel Plant Manager Tim Fritz talks about this year’s profit sharing.
Hormel has traditionally given out profit sharing checks on the Wednesday before Thanksgiving each year, and 2014 marks the 76th annual profit share.
Workers throughout the day will hear about the company’s annual performance, as well as the Austin plant’s efforts, before they receive checks.
Many employees are grateful for the opportunity.
“We’re the heartbeat of the company,” Rod Ryks, co-chair of the Austin plant’s safety committee, said.
Ryks was thankful to work at Hormel and praised the company’s practices as well as its safety record. 2014 was the Austin plant’s safest year thus far.
The bonuses are also welcome this time of year.
“It’s nice right around the holiday season,” plant worker Todd Retterath said.
Hormel employees look at their profit sharing checks Wednesday morning at the Hormel Foods plant
Retterath, like many workers, plans to use his portion of the profit sharing to cover holiday expenses and buy presents for his family, including his two daughters.
Hormel had a record $9.3 billion in sales this year, up 6 percent from 2013. That’s in part due to strong contributions from Hormel’s refrigerated foods and Jennie-O divisions. Overall, Hormel had $171.3 million in fourth-quarter net earnings, up 9 percent from $157.3 million last year
Hormel’s total 2014 net earnings came to a record $602.7 million, up 15 percent from $526.2 million last year. Earnings per share rose 14 percent from $1.95 to $2.23 this year, and Hormel officials predict earnings may grow to $2.45 to $2.55 in 2015.
The company also increased its dividends by .20 cents, or 25 percent overall, which will mean dividends of $1 per share.
Hormel expects to exceed its annual goal of 5 percent sales growth and 10 percent profit growth in 2014.
Amount Hormel shared with employees in 2014 – $17.4M
Amount Hormel shared with employees in 2013 – $17M
Amount Hormel shared with employees in 2012 – $16.9M
