Hershey: Announces Second Quarter Results

Hershey / PA. (thc) The Hershey Company announced sales and earnings for the second quarter ended July 05, 2009. Consolidated net sales were 1’171’183’000 USD compared with 1’105’437’000 USD for the second quarter of 2008. Net income for the second quarter of 2009 was 71’298’000 USD or 0,31 USD per share-diluted, compared with 41’467’000 USD or 0,18 USD per share-diluted, for the comparable period of 2008.

For the second quarters of 2009 and 2008, these results, prepared in accordance with generally accepted accounting principles («GAAP»), include net pre-tax charges of 42,7 million USD and 39,3 million USD, or 0,12 USD and 0,11 USD per share-diluted, respectively. These charges were associated with the Global Supply Chain Transformation («GSCT») program. Adjusted net income, which excludes these net charges, was 97’965’000 USD or 0,43 USD per share-diluted in the second quarter of 2009, compared with 66’952’000 USD or 0,29 USD per share-diluted in the second quarter of 2008, an increase of 48 percent in adjusted earnings per share-diluted.

For the first six months of 2009, consolidated net sales were 2’407’214’000 USD compared with 2’265’779’000 USD for the first six months of 2008. Reported net income for the first six months of 2009 was 147’192’000 USD or 0,64 USD per share-diluted, compared with 104’712’000 USD or 0,46 USD per share-diluted, for the first six months of 2008.

For the first six months of 2009 and 2008, these results, prepared in accordance with GAAP, include net pre-tax charges of 61,7 million USD and 69,9 million USD, or 0,17 USD and 0,20 USD per share, respectively. These charges were associated with the GSCT program. Adjusted net income for the first six months of 2009, which excludes these net charges, was 183’957’000 USD or 0,81 USD per share-diluted, compared with 150’867’000 USD or 0,66 USD per share-diluted in 2008, an increase of 23 percent in adjusted earnings per share-diluted.

Total GSCT program costs to date are 591,7 million USD. The forecast for total charges related to the program has been narrowed and is now expected to be 640 million USD to 665 million USD and includes 40 million USD to 65 million USD of non-cash pension settlement charges. For 2009, total GAAP charges related to the GSCT program are expected to be 85 million USD to 120 million USD, including non-cash pension settlement charges of 40 million USD to 50 million USD.

CEO Statement

«Hershey´s second quarter results reflect continued momentum in the marketplace», said David J. West, President and Chief Executive Officer. «Investments in our core brands and retail selling capabilities have resulted in strong gains in net sales, profit and U.S. market share. Net sales increased by 5,9 percent driven by the U.S. pricing action announced in August 2008, partially offset by volume declines associated with pricing elasticity and the impact of unfavourable foreign currency exchange rates. Core brands are responding to the investments in advertising, in-store programming and merchandising. In the second quarter, advertising increased 46 percent as we were on air supporting our core brands, the Easter season and the kick-off of our annual S´mores promotion.

Source: Hershey Announces Second Quarter Results and Increases Full Year Net Sales and EPS Outlook.
bakenet:eu
Back to top