J. M. Smucker Announces Second Quarter Results
ORRVILLE, Ohio, Nov. 19 /PRNewswire/ -- The J. M. Smucker Company, (NYSE: SJM.A and SJM.B), announced today that earnings for the second quarter ending October 31, 1998, were $9,063,000, up 5% over earnings of $8,602,000 for the same period last year. Sales for the three-month period were up approximately 7%, to $154,894,000 from $145,187,000 in the prior year second quarter. On a diluted basis, earnings per share were $.31 compared to $.29 per share last year.
The Company also announced that sales for the first six months of the fiscal year were $305,394,000 compared to $292,576,000 last year, an increase of over 4%, while earnings for the same period were up 5%. Diluted earnings per share for the first six months were $.67 compared to $.63 for the same period last year.
The Company reported sales increases in all of its business areas, with the majority of the increase occurring in the consumer, industrial, beverage, and international areas. The Company attributed the majority of the increase in the consumer area to increased sales of fruit spreads and to the launch of Smucker's Snackers, the Company's convenient new shelf-stable peanut butter and jelly offering for lunches and snacks. According to the Company, natural peanut butter sales also were up nicely over the prior year. In the industrial area, the growth came primarily from the sales of ingredients for new products of bakery and dairy customers. In beverages, growth in R. W. Knudsen Family brand products and the addition of sales from the recently acquired Mrs. Wiggles Rocket Juice beverage line accounted for the majority of that area's increase.
In international, the Company realized sales growth, due in part to the effect of acquisitions made in the last year, despite the fact that reported sales continued to be adversely impacted by the strength of the American dollar versus the Australian and Canadian currencies.
The Company reported that its increase in earnings resulted primarily from the growth in sales, offset by increases in distribution and certain operations support costs. Margins also were impacted by investment spending to support marketing initiatives (including the introduction of Smucker's Snackers) and the Company's information technology project. Marketing expenses, although up for the six-month period over the same period last year, increased at a lesser rate than sales during the second quarter.
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 Six Months Ended
October 31, October 31,
1998 1997 1998 1997
(Dollars in thousands, except per share data)
Net sales $154,894 $145,187 $305,394 $292,576
Cost of products sold 103,204 95,974 199,842 191,967
Gross profit 51,690 49,213 105,552 100,609
Selling, distribution, and
administrative expenses 37,378 35,346 74,720 70,736
Operating income 14,312 13,867 30,832 29,873
Interest income 438 482 1,063 1,180
Interest expense (256) (85) (260) (90)
Other income (expense) - net 191 174 486 300
Income before income taxes 14,685 14,438 32,121 31,263
Income taxes 5,622 5,836 12,642 12,688
Net income $9,063 $8,602 $19,479 $18,575
Net income per Common Share $.31 $.30 $.67 $.64
Net income per Common Share
- Assuming Dilution $.31 $.29 $.67 $.63
Dividends declared per share:
Class A $.14 $.13 $.28 $.26
Class B $.14 $.13 $.28 $.26
Common Shares
outstanding 29,043,137 29,009,200 29,034,992 29,041,879
Common Shares
outstanding
- assuming dilution 29,231,947 29,379,019 29,282,193 29,266,863
The J. M. Smucker Company
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
October 31,
1998 1997
(Dollars in thousands)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,129 $ 11,822
Trade receivables 53,606 53,293
Inventories 138,482 117,967
Other current assets 13,388 10,140
Total Current Assets 210,605 193,222
Property, Plant & Equipment, Net 160,858 146,876
Noncurrent Assets 62,920 65,568
Total $434,383 $405,666
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 38,006 $ 37,338
Other current liabilities 64,485 49,687
Total Current Liabilities 102,491 87,025
Other Noncurrent Liabilities 21,052 21,477
Shareholders' Equity, Net 310,840 297,164
Total $434,383 $405,666
