J. M. Smucker Announces Third Quarter Results
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
