The J. M. Smucker Co. Reports Sales Down, Earnings Up In 2014 Third Quarter
The J. M. Smucker Co. announced results for the third quarter ended Jan. 31, 2014, of its 2014 fiscal year. Results for the quarter and nine months ended Jan. 31, 2014, include the operations of Enray Inc. since the completion of the acquisition on Aug. 20, 2013, and the impact of the Company's licensing and distribution agreement with Cumberland Packing Corp., which commenced on July 1, 2013.
J.M Smucker Co. third quarter net sales decreased 6 percent in 2014, compared to 2013, reflecting pricing actions taken since the beginning of the third quarter of 2013 and the impact of the planned exit of certain portions of the company's business in its International, Foodservice and Natural Foods segment. The impacts of volume, excluding the planned exits, and mix changes were not significant to net sales in the third quarter of 2014.
The operating income excluding the impact of restructuring, merger and integration, and certain pension settlement costs ("special project costs") increased 3 percent in the third quarter of 2014, compared to 2013, reflecting gains in gross profit and lower corporate administrative expenses.
Income excluding special project costs increased 9 percent in the third quarter of 2014, compared to 2013, reflecting the increase in operating income and further impacted by lower interest expense.
Third quarter income per diluted share, excluding special project costs, increased 13 percent in 2014, compared to 2013, benefiting from the company's share repurchase activities over the past year.
"We achieved record third quarter earnings per share and made good progress against our strategic plan," commented Richard Smucker, chief executive officer, in a prepared statement. "We continue to navigate through a challenging operating environment. This journey is supported by our leading market position with strong and healthy brands. Our innovation pipeline is extensive and our new products are winning with customers. We continue to optimize our supply chain which, over time, improves our cost structure, margins, and cash flow, and positions us for future growth."
"Our overall retail business was solid for the quarter led by volume growth in U.S. retail coffee, our largest business segment," stated Vince Byrd, president and chief operating officer. "We also drove growth in a number of our core categories as a result of the increased level of quality merchandising achieved during the holiday season. We underperformed in our foodservice and spreads businesses, but view these as near-term issues. While the fourth quarter will be a difficult financial comparison, we are optimistic about our prospect for growth as we head into the new fiscal year." Full report.
