J.M. Smucker Announces First Quarter Results
ORRVILLE, Ohio, Aug. 19 /PRNewswire/ -- The J.M. Smucker Company, (NYSE: SJM.A and SJM.B), announced today that earnings for the first quarter ending July 31, 1998, were $10,416,000 up 4% percent over earnings of $9,973,000 for the same period last year. Sales for the three-month period were up approximately 2 percent, to $150,500,000 from $147,389,000 in the prior year first quarter. On a diluted basis, earnings per share were $.36 compared to $.34 per share last year.
The Company reported sales increases in its consumer, industrial, foodservice, and beverages business areas, with the majority of the increase occurring in consumer and industrial. The Company attributed the growth in the consumer area to an increase in fruit spread sales in the grocery market and to the launch of Smucker's Snackers, the Company's convenient new shelf- stable peanut butter and jelly offering for lunches and snacks. In the industrial area, the sales growth came in the bakery, yogurt filling, and frozen dairy categories from a combination of both new and existing products.
In international, the Company reported that sales continued to be adversely impacted by the strength of the American dollar versus the Australian and Canadian currencies. As a result, the international area reported sales for the quarter that were slightly behind those of the prior year, despite strong gains for the Australian business when measured in its domestic currency.
The Company reported that the increase in earnings resulted primarily from a combination of sales growth and a decrease in administrative expenses, offset by an increase in marketing expenditures. According to the Company, the increase in marketing represented investment spending for several new product initiatives, including Smucker's Snackers, along with additional support for the fruit spreads business. The Company also noted that it expects marketing support to continue at a higher level through the remainder of the fiscal year.
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,
1998 1997
(Dollars in thousands,
except per share data)
Net sales $150,500 $147,389
Cost of products sold 96,638 95,993
Gross profit 53,862 51,396
Selling, distribution, and
administrative expenses 37,342 35,390
Operating income 16,520 16,006
Interest income 625 698
Interest expense (4) (5)
Other income (expense) - net 295 126
Income before income taxes 17,436 16,825
Income taxes 7,020 6,852
Net income $10,416 $9,973
Net income per Common Share $0.36 $0.34
Net income per Common Share
- Assuming Dilution $0.36 $0.34
Dividends declared per share:
Class A $0.14 $0.13
Class B $0.14 $0.13
Common Shares outstanding 29,026,846 29,074,445
Common Shares outstanding
- assuming dilution 29,332,437 29,195,258
The J. M. Smucker Company
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
July 31,
1998 1997
(Dollars in thousands)
ASSETS
Current Assets:
Cash and cash equivalents $7,052 $14,954
Trade receivables 46,276 51,417
Inventories 137,642 115,347
Other current assets 12,632 10,660
Total Current Assets 203,602 192,378
Property, Plant & Equipment, Net 153,414 144,822
Noncurrent Assets 64,554 66,733
Total $421,570 $403,933
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $46,379 $46,899
Other current liabilities 48,222 41,605
Total Current Liabilities 94,601 88,504
Other Noncurrent Liabilities 21,024 21,260
Shareholders' Equity, Net 305,945 294,169
Total $421,570 $403,933
