DOW JONES NEWSWIRES
J.M. Smucker Co.'s (SJM) fiscal fourth-quarter earnings more
than doubled, smashing analysts' estimates, on November's
acquisition of Folgers.
The jam and jelly maker also projected earnings for the new year
above estimates - $3.65 to $3.80 a share - with revenue of $4.5
billion. Analysts surveyed by Thomson Reuters expected earnings of
$3.37 and revenue of $4.7 billion.
Smucker - which makes its eponymous jam, Jif peanut butter and
Crisco oils - has sought in recent years to expand by buying up a
series of food and consumer brands, many of which were dumped by
its much larger competitors.
Chairman and co-Chief Executive Tim Smucker said the company's
core business continues to be solid and the recently added coffee
business has exceeded its expectations.
For the period ended April 30, the company reported income of
$94.3 million, or 80 cents a share, up from $37.1 million, or 67
cents a share, a year earlier. Per-share results didn't increase as
much because of the stock issued in the Folgers deal. Excluding
restructuring and merger costs, earnings rose to $1.02 from 73
cents.
Net sales soared 81% to $1.07 billion, with acquisitions,
including Folgers, contributing $474.3 million.
Analysts were expecting earnings of 63 cents and revenue of $997
million.
Gross margin jumped to 37.4% from 30.9% on the Folgers deal.
Increased prices and acquisitions have been helping the company
offset the impact of higher marketing and food costs.
Volume rose in several categories, including Pillsbury baking
mixes and frostings, Hungry Jack products and Eagle Brand condensed
milk, though it declined in oils and peanut butter.
Net sales in the U.S. retail market - the company's largest -
rose 5% on higher prices.
Smucker's shares closed Wednesday at $43.64 and haven't traded
premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com