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HERSHEY FOODS REPORTS RECORD THIRD QUARTER FINANCIAL RESULTS

 HERSHEY, Pa., Oct. 20 /PRNewswire/ -- Hershey Foods Corporation (NYSE: HSY) today announced record consolidated net sales and earnings from operations for the third quarter ended Oct. 3, 1993.
 Net sales were $935,662,000 compared with $827,475,000 for the third quarter of 1992. Net income was $73,971,000, or $.82 per share, compared with $66,880,000, or $.74 per share, for the same quarter last year.
 Record net sales for the first nine months of 1993 were $2,451,880,000 compared with $2,250,282,000 for the first nine months of 1992. Income for the first nine months of 1993, excluding first quarter accounting changes for post-retirement benefits and income taxes (FAS 106 and 109) and the gain on the sale of the corporation's interest in Freia Marabou a.s, was $164,467,000, or $1.82 per share, compared with $160,279,000, or $1.78 per share, for the first nine months of 1992. Net income for the first nine months of 1993, after accounting changes and the Freia Marabou gain, was $101,143,000, or $1.12 per share. Weighted average shares outstanding for the third quarter and nine months of 1993 were 90,124,472 and 90,165,939, respectively, and 90,186,336 for the comparable 1992 periods.
 "Following the softness experienced mid-year, our business results for the third quarter of 1993 were very good," said Richard A. Zimmerman, chairman and chief executive officer. "Our strong sales growth was paced by excellent volume increases for Hershey Chocolate U.S.A. and Hershey Pasta Group. Hershey Chocolate U.S.A.'s volume growth was assisted by the national introduction of Hershey's Hugs chocolates. Both Hershey Chocolate U.S.A. and Hershey Pasta Group increased market share during the period.
 "All operating units contributed to increased operating income in the quarter with the majority of the growth coming from Hershey Chocolate U.S.A. and Hershey Pasta Group primarily as a result of their higher sales.
 "The impact of the recently enacted federal income tax legislation, which is retroactive to January 1, 1993, was recorded in the third quarter resulting in an effective income tax rate in the quarter of 41.9 percent and for the nine months of 42.6 percent. This had the effect of reducing earnings per share by approximately $.04 per share in both periods. By comparison, the effective income tax rate for the first nine months of 1992 was favorably impacted by the sale of the Corporation's equity interest in its Brazilian joint venture.
 "The quality of our earnings for the first nine months of 1993 is quite good. On a comparable basis, excluding the effects of the accounting changes, the Freia Marabou gain, the charge associated with early retirement of long-term debt and the higher effective tax rate, the increase in earnings from operations was quite healthy. We anticipate a strong finish and another record year for the corporation," Zimmerman concluded.
 HERSHEY FOODS CORPORATION
 Summary of Consolidated Statements of Income
 for the periods ended October 3, 1993 and September 27, 1992
 (in thousands of dollars except per share amounts)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Net Sales $ 935,662 $ 827,475 $2,451,880 $2,250,282
 Costs and Expenses:
 Cost of sales 544,816 474,683 1,419,181 1,293,170
 Selling, marketing
 and administrative 257,174 232,228 736,187 675,622
 Total costs
 and expenses 801,990 706,911 2,155,368 1,968,792
 Gain on Sale of
 Investment Interest --- --- 80,642 ---
 Income before Interest,
 Income Taxes and
 Accounting Changes 133,672 120,564 377,154 281,490
 Interest Expense, net 6,345 7,971 20,098 18,923
 Income before Income Taxes
 and Accounting Changes 127,327 112,593 357,056 262,567
 Provision for
 Income Taxes 53,356 45,713 152,005 102,288
 Income before Cumulative
 Effect of Accounting
 Changes 73,971 66,880 205,051 160,279
 Net Cumulative Effect
 of Accounting Changes --- --- (103,908) ---
 Net Income 73,971 66,880 101,143 160,279
 Income per Share:
 Before Accounting Changes $.82 $.74 $2.27 $1.78
 Net Cumulative Effect
 of Accounting Changes --- --- (1.15) ---
 Net Income $.82 $.74 $1.12 $1.78
 NOTES:
 (a) The nine months of 1993 include an after-tax gain, in the amount of $40.6 million, or $.45 per share, on the sale of the corporation's investment interest in Freia Marabou a.s.
 (b) Provision for Income Taxes for the third quarter and nine months of 1993 includes the impact of the new federal income tax legislation, which is retroactive to Jan. 1, 1993, and had the effect of reducing earnings per share by approximately $.04 per share in both periods. The effective income tax rate for the first nine months of 1992 was favorably impacted by the sale of the corporation's equity interest in its Brazilian joint venture, Petybon S.A., during the second quarter of 1992.
 (c) 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 for the third quarter and nine months of 1993 were 90,124,472 and 90,165,939, respectively, and 90,186,336 for the comparable periods of 1992.
 /delval/
 -0- 10/20/93
 /CONTACT: Natalie Bailey, 717-534-7631, or James A. Edris (financial), 717-534-7552, of Hershey Foods/
 (HSY)


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

MP-LJ -- PH013 -- 4497 10/20/93 10:47 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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