Printer Friendly

HERSHEY FOODS: RECORD RESULTS FROM OPERATIONS; ONE-TIME CHARGE FOR ACCOUNTING CHANGES; ONE-TIME GAIN ON SALE OF FREIA MARABOU INTEREST; REGULAR QUARTERLY DIVIDENDS DECLARED

 HERSHEY, Pa., April 26 /PRNewswire/ -- Hershey Foods Corporation (NYSE: HSY) today announced record consolidated net sales and earnings from operations for the first quarter ended April 4, 1993.
 As anticipated, during the first quarter the corporation recorded the net impact of adopting the new post-retirement benefits and income tax accounting pronouncements (FAS 106 and FAS 109, respectively). This net charge was partially offset by a gain on the sale of the corporation's 18.6 percent interest in Freia Marabou a.s, a Scandinavian chocolate, confectionery and snack food company.
 Net sales were $897,788,000 compared with $800,967,000 for the first quarter of 1992. Income excluding the accounting changes and the Freia Marabou gain was $64,471,000 or $.71 per share, compared with net income of $58,924,000, or $.65 per share, for the same quarter last year. Net income after accounting changes and the Freia Marabou gain for the first quarter 1993 was $1,147,000 or $.01 per share. Weighted average shares outstanding were 90,186,336 for both periods.
 "We are very pleased with the strong sales growth for Hershey Chocolate U.S.A. and Hershey Pasta Group which both posted double-digit volume gains as well as significant market share gains in the quarter," said Richard A. Zimmerman, chairman and chief executive officer. "Hershey Chocolate U.S.A. was the chief contributor to our increased income from operations despite a continued high level of marketing investment. Net income was reduced as a result of the non-cash net charge associated with the adoption of FAS 106 and FAS 109, which was $103,908,000, or $1.15 per share, partially offset by the after-tax gain on the sale of our FreiaJMarabou investment of $40,584,000, or $.45 per share. The Norwegian government recently approved the transaction and proceeds are expected shortly.
 "Looking through the complexity of the first quarter's financial results, our operations are quite healthy, ande? are very pleased with the strong sales and market share gains for our domestic operations. We are looking forward to another record year for results from operations," Zimmerman concluded.
 ------
 The board of directors of Hershey Foods Corporation today declared regular quarterly dividends of $.27 on the common stock and $.245 on the Class B common stock. Both dividends are payable on June 15, 1993, to stockholders of record May 21, 1993. It is the 254th consecutive regular dividend on the corporation's common stock and the 35th consecutive dividend on the Class B common stock.
 HERSHEY FOODS CORPORATION
 Summary of Consolidated Statements of Income
 for the periods ended April 4, 1993 and March 29, 1992
 (In thousands of dollars, except per-share amounts)
 First Quarter 1993 1992
 Net Sales $897,788 $800,967
 Costs and Expenses:
 Cost of sales 510,769 463,438
 Selling, marketing and administrative 273,245 233,276
 Total costs and expenses 784,014 696,714
 Gain on Sale of Investment Interest 80,642 ---
 Income before Interest, Income Taxes
 and Accounting Changes 194,416 104,253
 Interest Expense, net 7,561 5,221
 Income before Income Taxes
 and Accounting Changes 186,855 99,032
 Provision for Income Taxes 81,800 40,108
 Income before Cumulative Effect
 of Accounting Changes 105,055 58,924
 Net Cumulative Effect of Accounting
 Changes (103,908) ---
 Net Income $1,147 $58,924
 Net Income per Share:
 Before Accounting Changes $1.16 $.65
 Net Cumulative Effect of
 Accounting Changes (1.15) ---
 Net Income per Share $.01 $.65
 A) In the first quarter of 1993, the Corporation recorded an after- tax gain, in the amount of $40.6 million, or $.45 per share, on the sale of its investment interest in Freia Marabou a.s.
 B) Net Income per Share has been computed based on the weighted average number of shares of Common Stock and Class B Common Stock outstanding during the period. Average shares outstanding were 90,186,336 for both periods.
 /delval/
 -0- 4/26/93
 /CONTACT: Natalie Bailey, 717-534-7631, or James A. Edris (financial), 717-534-7552, both of Hershey Foods/
 (HSY)


CO: Hershey Foods Corporation ST: Pennsylvania IN: FOD SU: ERN DIV

CC -- PH033 -- 0773 04/26/93 13:52 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 26, 1993
Words:691
Previous Article:DAUPHIN DEPOSIT CORPORATION DECLARES DIVIDEND
Next Article:RALPH K. HOLLIDAY NAMED PRESIDENT OF KEY BANK OF WASHINGTON
Topics:


Related Articles
HERSHEY FOODS ANNOUNCES 1991 RECORD SALES AND EARNINGS REGULAR QUARTERLY DIVIDEND DECLARED
HERSHEY FOODS TO ACQUIRE INTEREST IN FREIA MARABOU a.s
HERSHEY FOODS SELLS STAKE IN FREIA MARABOU A.S.
HERSHEY FOODS SECOND QUARTER AND FIRST HALF FINANCIAL RESULTS
HERSHEY FOODS SECOND QUARTER AND FIRST HALF FINANCIAL RESULTS
HERSHEY FOODS REPORTS RECORD THIRD QUARTER FINANCIAL RESULTS
HERSHEY FOODS REPORTS RECORD FOURTH QUARTER SALES AND EARNINGS
HERSHEY FOODS REPORTS RECORD FOURTH QUARTER SALES AND EARNINGS
HERSHEY FOODS ANNOUNCES FIRST QUARTER RESULTS
HERSHEY FOODS DECLARES DIVIDEND

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters