J.M Smucker Reports 28% Net Income Growth
J. M. Smucker (SJM) announced Thursday that fourth-quarter net income rose 28% to $120.6 million from $94.3 million in the same quarter last year. On a per share basis, the company earned $1.10 in the fourth quarter ending April 30, 2010, or $1.07, excluding restructuring and the merger and integration costs of Folgers. This was 5% higher than the $1.02 per share Smucker earned last year, but handily beat consensus estimates for earnings of 80 cents per share. Quarterly sales growth was flat at $1.07 billion, but higher than the $1 billion analysts had expected.
Going forward, the company said that with its "strategy of owning and marketing North American food brands which hold the number one market position in their respective categories," it still expects 6% annual net sales growth and greater than 8% earnings per share growth, excluding restructuring and merger and integration costs.
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Going forward, the company said that with its "strategy of owning and marketing North American food brands which hold the number one market position in their respective categories," it still expects 6% annual net sales growth and greater than 8% earnings per share growth, excluding restructuring and merger and integration costs.
For fiscal 2011, net sales are expected to increase approximately 3% compared to 2010. Income per diluted share is expected to range between $4.50 and $4.60, excluding restructuring and merger and integration costs of 55 cents to 60 cents per diluted share. These topped analyst estimates.
Also because of the restructuring of its coffee and fruit-spreads operations announced last quarter, Smucker expects to incur restructuring costs of approximately $190 million, of which $5.7 million was recognized in the fourth quarter of 2010. Approximately $85 million to $90 million will be incurred in fiscal 2011, and the balance through 2014.
