Hormel Foods Corp HRL
Q2 2011 Earnings Call Transcript

Transcript Call Date 05/25/2011

Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Hormel Foods Second Quarter Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. This conference is being recorded today, Wednesday, May 25, 2011.

I would now like to turn the conference over to Kevin Jones. Please go ahead, Sir.

Kevin C. Jones - Director, IR: Good morning. Welcome to the Hormel Foods conference call for the second quarter of fiscal 2011. We released our results this morning before the market opened around 6.30 am Central Time. If you did not receive a copy of the release, you can find it on our website at under the Investors section.

On our call today is Jeff Ettinger, Chairman of the Board, President, and Chief Executive Officer; and Jody Feragen, Executive Vice President and Chief Financial Officer. Jeff will provide a review of the operating results for the quarter. Then Jody will provide detailed financial results for the quarter. The line will be open for questions following Jody's remarks.

An audio replay of this call will be available beginning at 10.30 am Central Time today, May 25, 2011. The dial-in number is 800-406-7325, and the access code is 4434269. It will also be posted to our website and archived for one year.

Before we get started with the results of the quarter, I need to reference the Safe Harbor statement. Some of the comments made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed in or implied by the statements we will be making. Among the factors that may affect the operating results of the Company are fluctuations in the cost and availability of raw materials and market conditions for finished products.

Please refer to Pages 27 through 33 in the Company's Form 10-Q for the quarter ended January 30, 2011, which was filed with the SEC on March 11, 2011 for more details. It can be accessed on our website.

Now, I'll turn the call over to Jeff.

Jeffrey M. Ettinger - Chairman, President and CEO: Good morning, everyone. We are pleased to report another excellent quarter in terms of both earnings and sales. Earnings for the second quarter were $0.40 per share, up a solid 18% over adjusted earnings of $0.34 per share a year ago. You may recall that our adjusted results last year excluded one-time charges totaling $0.05 per share associated with the VALLEY FRESH plant closing and the change to their health care laws.

Total dollar sales were up 15% over a year ago and we were again able to register sales gains in all five segments. This is the fifth consecutive quarter we have achieved year-over-year sales increases in every segment.

On the earnings side, this quarter once again demonstrated the benefit of our balanced business model as the strong performance by our Refrigerated Foods, Jennie-O Turkey store and all other segments more than made up for softer results from our Grocery Products and Specialty Foods segments.

Read our Earnings Call Transcript disclaimer.
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