Chicago / IL. (slc) Sara Lee Corporation has swung to a fiscal fourth-quarter loss on charges to write down certain assets amid a softening economy and soaring wheat costs. Sara Lee posted a loss of 695 million USD, or a loss of 0,98 USD per share, compared with a profit of 117 million USD, or 0,16 USD per share, a year ago. Results include impairment charges of 1,20 USD per share. Revenue rose twelve percent to 3,51 billion USD from 3,13 billion, helped by a weak USD, price increases, and higher sales in all segments. Analysts expected earnings of 0,26 USD and sales of 3,48 billion USD, according to a Thomson Financial poll. Analysts usually exclude one-time items from their estimates. Sara Lee also forecast adjusted fiscal 2009 profit below expectations.
North American Retail Bakery (includes Senseo coffee)
Net sales increased 12,7 percent to 590 million USD in the fourth quarter of fiscal 2008, primarily driven by higher selling prices to offset increased input costs and by unit volume growth. Adjusted net sales also rose 12,7 percent. Net sales for the full year increased 9,2 percent to 2,2 billion USD. Adjusted net sales also rose 9,2 percent.
Operating segment income was 26 million USD in the fourth quarter, compared to two million USD in the year ago period. The improvement was primarily driven by price increases, lower transformation-related expenses and strong unit volumes. Adjusted operating segment income was 29 million USD, compared to 26 million USD in the prior year.
Operating segment income for the full year was 55 million USD, compared to a loss of two million USD in fiscal 2007. Adjusted operating segment income was 59 million USD, compared to 46 million USD in the prior year. Unit volumes increased 4,2 percent in the fourth quarter, driven by volume growth across the fresh bakery and branded frozen bakery businesses. The Sara Lee brand maintained its position as the No. 1 fresh bread brand in America with a 7,7 percent share according to IRI data (12 weeks ending June 29, 2008). Unit volumes for the segment were up 1,3 percent for the full year.
International Bakery
Net sales increased 17,8 percent to 243 million USD in the fourth quarter of fiscal 2008, primarily driven by favorable foreign currency exchange rates and price increases to cover higher input costs. This was partially offset by lower unit volumes and an unfavorable sales mix shift into private label bread in Spain. Adjusted net sales rose 1,9 percent. Net sales for the full year increased 16,1 percent to 929 million USD. Adjusted net sales increased 3,0 percent.
The segment reported an operating segment loss of 385 million USD in the fourth quarter, compared to income of six million USD in the year-ago period with the decrease due to 400 million USD in impairment charges in the Spanish bakery business. Adjusted operating segment income was 16 million USD, flat compared to the prior-year period.
The segment reported an operating segment loss of 346 million USD for the full year, compared to income of 38 million USD for fiscal 2007. Adjusted operating segment income for the full year was 63 million USD, basically flat compared to fiscal 2007. Unit volumes decreased 2,7 percent in the fourth quarter, resulting from weak unit volumes in Spain, in part due to a national transportation strike, and lower unit volumes in Australia, partially due to the planned exit of certain product lines. Unit volumes for the year were basically flat.
Info: The complete financial statement is available here
