020239 Hormel 1st-Quarter Earnings RiseFebruary 15, 2002Austin, MN - Hormel Foods Corp., the largest U.S. turkey processor, posted higher net earnings for its fiscal first quarter, as the company saw its sales and market share increase in grocery, deli, flavored meats and ethnic foods. The maker of Jennie-O turkey products and SPAM luncheon meat said net earnings in the period ended Jan. 26 rose to $50.4 million, or 36 cents a share, from an adjusted $42.8 million, or 31 cents, a year earlier. Sales rose 10% to $983.0 million from $891.2 million a year ago. Volume rose 6% from a year earlier. First-quarter grocery product sales rose 2.6% to $196.3 million. Operating profit in the segment dipped to $36.9 million from $37.2 million in the year-ago period, pulled lower by increased promotional costs. The company remained cautious about its outlook. “I am optimistic about meeting our financial objectives for the rest of this year, but we continue to watch the expansion of production in the turkey industry and the impact this may have on our Jennie-O Turkey Store results,” Chairman and Chief Executive Joel Johnson said in a statement. The company also said it was seeing some improvement in the food service business, which had been hit following the Sept. 11 attacks in the United States. Hormel stock was up 22 cents at $26.40 at midday Thursday on the New York Stock Exchange. The stock has fallen about 2% since the first of the year.
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