ORRVILLE, Ohio, Aug. 15 /PRNewswire/ -- The J. M. Smucker Company, (NYSE: SJMA and SJMB), announced today that earnings for the first quarter ending July 31, 1997, were $9,973,000, up 33% over the $7,489,000 earned during the same period last year. Sales for the three-month period were $147,389,000, versus $129,629,000 in the first quarter last year, an increase of approximately 14%. Earnings per share were $.34 compared to $.26 per share last year.
The Company reported sales increases in each of its Consumer, Industrial, Foodservice, Beverage, and Specialty business areas, with Consumer and Industrial contributing the majority of the overall increase. In the Consumer area, all markets were up over the prior year and the grocery and mass retail markets reported the largest dollar gains. The Company attributed much of the growth in the Consumer area to improved sales of fruit spreads, particularly traditional preserve and jelly products. The addition of the Kraft retail fruit spreads business, acquired during the fourth quarter of fiscal 1997, also contributed. Sales of dessert toppings, natural peanut butter, and Goober products also were up over the previous year. In the Industrial area, the sales growth came from a combination of new and existing products in the bakery and yogurt filling categories.
The Company stated that volume growth and a more profitable mix of products sold contributed substantially to the earnings increase. Lower raw material costs and a decrease in interest expense also made a favorable impact on earnings.
The J. M. Smucker Company is the nation's leading producer of branded preserves, jams, jellies, and other fruit spread products, health and natural foods beverages, ice cream toppings, and natural peanut butter.
THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME (Unaudited) Three Months Ended July 31, 1997 1996 (Dollars in thousands, except per share data) Net sales $147,389 $129,629 Cost of products sold 95,993 85,883 Gross profit 51,396 43,746 Selling, distribution, and administrative expenses 35,390 30,517 Operating income 16,006 13,229 Interest income 698 437 Interest expense 5 750 Other income (expense) - net 126 (85) Income before income taxes 16,825 12,831 Income taxes 6,852 5,342 Net income $9,973 $7,489 Net income per Common Share(A) $.34 $.26 Dividends declared per share: Class A $0.13 $0.13 Class B $0.13 $0.13 (A) Computed on the weighted average number of Class A Common Shares and Class B Common Shares outstanding namely: 29,167,890 29,165,770 The J. M. Smucker Company CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) July 31, 1997 1996 ASSETS (Dollars in thousands) Current Assets: Cash and cash equivalents $14,954 $12,243 Trade receivables 51,417 45,614 Inventories 115,347 113,679 Assets of discontinued operations, net -- 22,131 Other current assets 10,660 18,569 Total Current Assets 192,378 212,236 Property, Plant & Equipment, Net 144,822 140,833 Noncurrent Assets 66,733 65,993 Total $403,933 $419,062 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $46,899 $40,388 Other current liabilities 41,605 36,183 Total Current Liabilities 88,504 76,571 Long-term Debt -- 43,100 Other Noncurrent Liabilities 21,260 20,475 Shareholders' Equity, Net 294,169 278,916 Total $403,933 $419,062