Hormel 4Q Profit Falls 33%

Hormel Foods Corp. (HRL) said Tuesday its fiscal fourth-quarter profit fell 33% because of higher commodity costs and a big investment loss. The company also raised its annual dividend by 2 cents, but forecast 2009 profit well below analysts' estimates, citing an oversupply of turkey breast meat, higher commodity costs, increasing hog prices and economic pressures on consumer demand.

All those factors helped lead to a drop in profit in the quarter to $67.8 million, or 50 cents per share, from $101.2 million, or 73 cents per share, a year ago. Revenue rose 12 percent to $1.86 billion from $1.66 billion, helped by sales of refrigerated and specialty foods. Analysts expected earnings of 48 cents per share on revenue of $1.8 billion.

by Mark Anderson |  11/25/08  |  Stocks: HRL,