ORRVILLE, Ohio, Feb. 17 /PRNewswire/ -- The J. M. Smucker Company, (NYSE: SJM.A and SJM.B), announced today that sales for the third quarter were $140,772,000, up approximately 8% over $130,658,000 last year. Earnings for the period increased approximately 3% to $8,245,000 or $.28 per share. This compared to earnings of $8,033,000 or $.27 per share last year, before the effect of an accounting change which reduced prior year's net income to $5,075,000 or $.17 per share.
The Company also announced that sales for the first nine months of the fiscal year were $446,166,000 compared to $423,234,000 last year, an increase of over 5%. Earnings for the same period were up 4% (prior to the accounting change referred to above). Earnings per share for the first nine months were $.95 compared to $.91 for the same period last year.
The Company reported sales increases in all areas of its business. The international area showed strong growth, with all of its markets reporting increases over the prior year. The majority of the international growth occurred in the Australasia market, where acquisitions made a significant contribution. The growth in international occurred despite the continued adverse effect of exchange rates on the results in Australia and Canada.
In the consumer area, the majority of the increase came in the traditional fruit spreads segment and from the impact of the introduction earlier this year of Smucker's Snackers, the Company's convenient new shelf-stable peanut butter and jelly offering for lunches and snacks. The Company also noted that its market position in the core fruit spreads, toppings, and peanut butter categories remains strong with share of market growing in each area.
The Company reported that the increase in quarterly earnings was attributable primarily to the growth in sales and to a decrease in administrative expenses, offset by increases in the cost of selected fruits and in distribution costs. Earnings also were impacted by increases from the prior year in marketing expenses, interest costs, and income taxes.
The J. M. Smucker Company (http://www.smucker.com) 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 Nine Months Ended January 31, January 31, 1999 1998 1999 1998 (Dollars in thousands, except per share data) Net sales $140,772 $130,658 $446,166 $423,234 Cost of products sold 91,717 83,426 291,559 275,393 Gross profit 49,055 47,232 154,607 147,841 Selling, distribution, and administrative expenses 35,465 35,005 110,185 105,741 Operating income 13,590 12,227 44,422 42,100 Interest income 370 552 1,433 1,732 Interest expense (252) (30) (512) (120) Other income - net 97 412 583 712 Income before income taxes and cumulative effect of change in accounting method 13,805 13,161 45,926 44,424 Income taxes 5,560 5,128 18,202 17,816 Income before cumulative effect of change in accounting method 8,245 8,033 27,724 26,608 Cumulative effect of change in accounting method -- (2,958) -- (2,958) Net income $8,245 $5,075 $27,724 $23,650 Earnings per Common Share: Income before cumulative effect of accounting change $.28 $.27 $.95 $.91 Cumulative effect of accounting change -- (.10) -- (.10) Net Income per Common Share $.28 $.17 $.95 $.81 Earnings per Common Share - Assuming Dilution: Income before cumulative effect of accounting change $.28 $.27 $.95 $.91 Cumulative effect of accounting change -- (.10) -- (.10) Net Income per Common Share -- Assuming Dilution $.28 $.17 $.95 $.81 Dividends declared per share: Class A $.14 $.13 $.42 $.39 Class B $.14 $.13 $.42 $.39 Common Shares outstanding 29,071,579 29,034,886 29,047,187 29,039,548 Common Shares outstanding -- assuming dilution 29,294,068 29,382,091 29,286,151 29,318,864 The J. M. Smucker Company CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) January 31, 1999 1998 (Dollars in thousands) ASSETS Current Assets: Cash and cash equivalents $5,824 $24,836 Trade receivables 49,841 42,238 Inventories 125,918 109,126 Other current assets 12,127 9,404 Total Current Assets 193,710 185,604 Property, Plant & Equipment, Net 164,113 141,048 Noncurrent Assets 76,285 63,476 Total $434,108 $390,128 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $33,419 $26,991 Notes payable 26,712 -- Other current liabilities 37,375 42,523 Total Current Liabilities 97,506 69,514 Other Noncurrent Liabilities 21,186 21,733 Shareholders' Equity, Net 315,416 298,881 Total $434,108 $390,128
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