Hormel lowers expectations for 2013
Published 1:26 pm Tuesday, June 18, 2013
Hormel Foods Corp. has lowered its earnings outlook for 2013, citing higher costs and softer sales in its refrigerated foods division, and lower-than-expected results in its pork operations.
The Austin-based meatpacker on Tuesday lowered its full year guidance range for fiscal 2013 from $1.93-$2.03 per share to $1.88-$1.96 per share. After the announcement, the company’s stock fell to $38.81 per share at the opening bell, down $1.81 from its Monday close of $40.65.
“We remain very bullish about our future earnings potential,” said Hormel CEO and President Jeff Ettinger.
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Ettinger said the company will provide more details on the outlook during Hormel’s Investor Day on June 26.
Hormel finished the second quarter of 2013 in May with a 2 percent drop in net income, but did not adjust its guidance then. Revenue rose 7 percent to $2.15 billion from $2.01 billion, but fell short of the $2.19 billion that Wall Street expected at the time. The company blamed higher grain costs, weaker turkey prices and a one-time cost associated with acquiring Skippy peanut butter for its drop in income.