990805 Sara Lee 4th Quarter Net Falls on Meat RecallAugust 7, 1999Chicago - Consumer products maker Sara Lee Corp. said that net income for its fourth quarter ended July 3 fell as expected as the company's packaged meat division continued to weather the aftermath of a deadly outbreak of food-borne illness. Net income for the quarter was $283 million, down about 6% from $301 million a year ago, the maker of products ranging from Ball Park hot dogs to Hanes underwear said. Earnings were 31 cents a diluted share, unchanged from a year ago, and a penny above the consensus analysts estimate, according to First Call/Thomson Financial, which tracks such estimates. The per share results reflect 46 million fewer shares outstanding in the fiscal 1999 fourth quarter. Net sales rose 1.9% to $5.20 billion from $5.10 billion, as lower commodity prices and currency fluctuations continued to impact sales. For the year, the company reported net income of $1.18 billion, or $1.26 a share, on flat sales of $20 billion. That compared with a loss of $537 million, or 57 cents a share, including a $2 billion restructuring charge. Full fiscal 1999 included a $76 million charge related to the recall of hot dogs, deli meats and other products made at the company's Bill Mar Food plant in Zeeland, Mich. The recall came after federal officials linked meat made there to a deadly outbreak of listeria, a food-borne illness that can be dangerous for pregnant women and people with weakened immune systems. The outbreak was linked to 21 deaths and more than 100 illnesses in 22 states. Aside from the costs of the recall, the company has said it has had to bear the cost of increased expenses related to brand support and new safety measures. Net income from the food division fell 28.5% to $52 million in the fourth quarter. But other divisions posted gains, including branded apparel, which posted net income of $140 million, up 6.7%.
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