Hershey: Announces Third Quarter Results

Hershey / PA. (thc) The Hershey Company announced sales and earnings for the third quarter ended October 04, 2009. Consolidated net sales were 1’484’118’000 USD compared with 1’489’609’000 USD for the third quarter of 2008. Reported net income for the third quarter of 2009 was 162’023’000 USD or 0,71 USD per share-diluted, compared with 124’538’000 USD or 0,54 USD per share-diluted, for the comparable period of 2008. Highlights:

• Earnings per share-diluted of 0,71 USD as reported and 0,73 USD adjusted
• Retail takeaway up 4,8 percent in channels that account for over 80 percent of the Company´s U.S. business
• Full-year net sales growth of three to five percent expected
• Outlook for 2009 adjusted earnings per share-diluted increased; to be in the 2,12 USD to 2,14 USD range

For the third quarters of 2009 and 2008, these results, prepared in accordance with generally accepted accounting principles (GAAP), include net pre-tax charges of 11,0 million USD and 31,0 million USD or 0,02 USD and 0,10 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 168’508’000 USD or 0,73 USD per share-diluted in the third quarter of 2009, compared with 145’813’000 USD or 0,64 USD per share-diluted in the third quarter of 2008, an increase of 14,1 percent in adjusted earnings per share-diluted.

For the first nine months of 2009, consolidated net sales were 3’891’332’000 USD compared with 3’755’388’000 USD for the first nine months of 2008. Reported net income for the first nine months of 2009 was 309’215’000 USD or 1,35 USD per share-diluted, compared with 229’250’000 USD or 1,00 USD per share-diluted, for the first nine months of 2008.

For the first nine months of 2009 and 2008, these results, prepared in accordance with GAAP, include net pre-tax charges of 72,7 million USD and 101,0 million USD, or 0,19 USD and 0,30 USD per share, respectively. These charges were associated with the GSCT program. Adjusted net income for the first nine months of 2009, which excludes these net charges, was 352’465’000 USD or 1,54 USD per share-diluted, compared with 296’680’000 USD or 1,30 USD per share-diluted in 2008, an increase of 18,5 percent in adjusted earnings per share-diluted.

Total GSCT program costs to date are 602,7 million USD. The forecast for total charges related to the program remains 640 million USD to 665 million USD and includes the non-cash pension settlement charges discussed in prior quarters. In 2009, the Company expects to record total GAAP charges, including possible non-cash pension settlement charges, of about 0,26 USD to 0,32 USD per share-diluted, generating expected GAAP earnings of 1,80 USD to 1,88 USD per share-diluted.

Info: «Hershey Announces Third Quarter Results and Increases 2009 Full-Year EPS Outlook» (complete press release).