Hormel Foods Corporation reports net earnings of $29,550,000 or a 40.

Thursday, August 19, 1999

Hormel Foods Corporation reports net earnings of $29,550,000 or a 40.8 percent increase over the company’s third quarter a year ago.

This represents an increase of $8,556,000 over 1998’s third quarter net earnings of $20,994,000.

For the first nine months of 1999, operating earnings were $99,956,000, an increase of $223,219,000, or 30.3 percent, over operating earnings of $76,737,000 for the comparable period of fiscal 1998.

Total reported earnings for the nine months were $103,764,000 compared to last year’s ninth months report of $94,139,000.

Both are higher than announced operating earnings with the increase reflecting a one-time gain in the first quarter of 1999 of $3,808,000 for the sale of land by Compofrio Alimentacion, S.A., Madrid, Spain. Hormel Foods has a 21.4 percent ownership interest in the Spanish company.

Also, the company’s first three quarters report of fiscal 1998, reported earnings including a one-time first quarter gain of $17,402,000 for the sale of the company’s Davenport, Iowa gelatin/specialized proteins plant.

Third quarter dollar sales were $816,818,000, an 8.1 percent increase from the $755,769,000 reported for the same 13-week period of fiscal 1998.

For the nine months, dollar sales of $2,406,918,000 were up 2.5 percent from the $2,349,008 announced for the corresponding 39 weeks of last year.

Strong volume gains and significantly improved business mix continue to drive results, according to the company’s announcement.

"We are pleased that our direct customers and consumers around the globe are reacting positively to our many initiatives, " said Joel W. Johnson, chairman of the board, president and CEO.

"Our tonnage gains are based upon favorable consumption trends, even against strong year-ago comparisons."

"The business mix improvements reflect continued strength in Hormel Foods branded pork and turkey initiatives which intentionally replace lower margin commodity sales," Johnson said.