Printer Friendly

HORMEL & CO. 'F-1+' $100 MILLION COMMERCIAL PAPER AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, May 10 /PRNewswire/ -- Hormel & Co.'s "F-1+" $100 million commercial paper program is affirmed by Fitch. The program is backed by $10 million of confirmed bank lines. If the company issues any commercial paper greater than $10 million, it will arrange bank facilities for 100 percent backing. Hormel has not issued commercial paper since April 1990.
 This rating is based on the company's strong historical financial performance, successful transition into a branded consumer products company, and conservative financial and operating philosophy.
 Hormel is conservatively leveraged, with 1.2 percent debt-to- capitalization as of Jan. 30, 1993. Furthermore, the company had pretax interest coverage of 99 times (x) for the first quarter ended Jan. 30, 1993; pretax interest coverage was 38x at fiscal year-end Oct. 31, 1992. Moreover, the company enjoys an extremely strong liquidity position with cash and marketable securities of more than $224 million as of Jan. 30, 1993.
 As a result of Hormel's ongoing efforts to expand its product lines into higher value added products, as well as productivity improvements, operating margins steadily improved to 5.2 percent at fiscal year-end Oct. 31, 1992, vs. 4.3 percent fiscal year-end Oct. 31, 1988. Pretax return on total capital was 24.1 percent at fiscal year-end Oct. 31, 1992, vs. 22.4 percent at fiscal year-end Oct. 31, 19 ?
 Hormel is selectively expanding its product portfolio through in-house research and development efforts and acquisitions. Hormel continues to develop into new markets such as ethnic foods, microwaveable products, and diet and health conscious foods to compensate for the overall slow growth and mature nature of the food markets. The company acquired the House of Tsang during November 1992 and has greatly expanded its Light N'Lean 97-product line.
 The Hormel heirs' lawsuit against the Hormel Foundation regarding its ownership stake in Hormel currently is under appeal. If the court agrees with the earlier ruling that the Hormel Foundation must lower its stock position to 35.7 percent of the company from 41.7 percent, the sale of this 6 percent would translate into approximately $114 million at current market values. Hormel & Co. has a large degree of financial flexibility given its low debt leverage and large cash balances should it elect to repurchase these shares.
 -0- 5/10/93
 /CONTACT: Anne Marie May of Fitch, 212-908-0589/


CO: Hormel & Co. ST: Minnesota IN: FOD SU: RTG

GK -- NY096 -- 6664 05/10/93 16:31 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:May 10, 1993
Words:405
Previous Article:NATIONAL CLASS ACTION LAWSUIT AGAINST DOW CORNING AND DU PONT FOR TMJ IMPLANTS
Next Article:CAPSTEAD MORTGAGE CORPORATION ANNOUNCES FILING OF $500 MILLION SHELF REGISTRATION STATEMENT
Topics:


Related Articles
S.C. JOHNSON 'AA-' SENIOR DEBT, 'F-1+' COMMERCIAL PAPER AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
COMMERCIAL CREDIT $100 MILLION SENIOR NOTES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
PRIMERICA SENIOR DEBT RAISED TO 'A+', $300 MILLION PREFERRED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
/C O R R E C T I O N -- FITCH FINANCIAL WIRE/
IDAHO HOUSING AGENCY COMMERCIAL PAPER PROGRAM RATED 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
IBM CORP. UNITS 'A' SENIOR DEBT AFFIRMED BY FITCH AFTER SALE ANNOUNCEMENT -- FITCH FINANCIAL WIRE --
HORMEL FOODS CORP.'S 'F-1+' COMMERCIAL PAPER AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
HORMEL FOODS $100 MILLION 'F-1+' COMMERCIAL PAPER PROGRAM AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
Hormel Foods $100 Million Commercial Paper Downgraded To 'F-1' By Fitch - Fitch Financial Wire -
MCN Energy Affirmed; MCNIC Debt Shelf Rated 'BBB+' by Fitch IBCA -- Fitch IBCA Financial Wire --

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