Hormel Foods reports 33 per cent profit surge

Posted by James Ferre on 21st August 2009

Hormel Foods, the maker of SPAM, has seen operating profit rise 33 per cent in the third quarter compared to last year despite a 4 per cent decline in volumes.

The manufacturer of brands like Stagg Chilli and SPAM in Australia was pleased with the result, which topped estimates.

“We are pleased to report improved operating segment results for the quarter,” Jeffrey Ettinger, Chairman, President and CEO of Hormel Foods, advised. “Our Grocery Products segment had another solid quarter, as increased sales of canned items more than offset the impact of discontinued sales of olive oil and soft sales of microwave products. Our Specialty Foods and All Other segments had weaker results.”

“Sales and volumes were down overall, as we made intentional reductions to our turkey production and the effects of the economy took their toll on certain portions of the business,” he added.