The Hershey Company Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 28, 2014; Provides Earnings Guidance for the Full Year 2014 and 2015
Oct 29 14
The Hershey Company reported unaudited consolidated earnings results for the third quarter and nine months ended September 28, 2014. For the quarter, the company reported net sales of $1,961,578,000 compared to $1,853,886,000 a year ago. Income before interest and income taxes was $366,196,000 compared to $370,636,000 a year ago. Income before income taxes was $345,423,000 compared to $348,877,000 a year ago. Net income was $223,741,000 or $1.00 diluted per share compared to $232,985,000 or $1.03 diluted per share a year ago. Adjusted net income, which excludes these net charges, was $234,199,000 or $1.05 per share-diluted in the third quarter of 2014, compared with $236,618,000 or $1.04 per share-diluted in the third quarter of 2013, an increase of 1.0% in adjusted earnings per share-diluted.
For the nine months period, the company reported net sales of $5,411,741,000 compared to $5,189,826,000 a year ago. Income before interest and income taxes was $1,047,266,000 compared to $1,031,370,000 a year ago. Income before income taxes was $984,474,000 compared to $964,884,000 a year ago. Net income was $644,404,000 or $2.86 diluted per share compared to $634,395,000 or $2.79 diluted per share a year ago. Adjusted net income for the first nine months of 2014, which excludes these net charges, was $664,152,000 or $2.95 per share-diluted, compared with $648,693,000 or $2.86 per share-diluted in 2013, an increase of 3.1% in adjusted earnings per share-diluted.
The company estimates full-year 2014 net sales to increase around 4.75%, including the impact of foreign currency exchange rates and a contribution from acquisitions of about 0.75 points. Given year-to-date results, the impact of unfavorable product mix and volatility in the commodity markets, primarily dairy, the company expects adjusted gross margin to decline about 75 basis points versus 2013. The company anticipates adjusted earnings per share-diluted growth for the full year to increase around 8%. Adjusted EPS - Diluted project in range between $4.01 to $4.03. Reported EPS - Diluted project in range between $3.88 to $3.92. This projection assumes net business realignment charges related to Project Next Century and other supply chain programs of $0.03 to $0.04 per share-diluted, NSRPI of $0.01 per share-diluted and a non-cash impairment charge of $0.04 per share-diluted. The company expects total capital expenditures to be about $360 million to $370 million, lower than previous estimate of $380 million to $390 million, primarily due to timing related to the manufacturing facility we're building in Johor, Malaysia. The company expects the adjusted tax rate to be around 34.5%.
The company estimates full-year 2015 net sales will increase about 7% to 9%, including the impact of foreign currency exchange rates and a contribution from acquisitions of around 2.5 points. The company adjusted earnings per share-diluted in the 9 to 11% range. Adjusted EPS - Diluted project in range between $4.37 to $4.47. Reported EPS - Diluted projects in range between $4.27 to $4.40 and NSRPE is expected to be range between $0.02 to 0.03 per share.
Hershey Declares Quarterly Dividends, Payable on December 15, 2014
Oct 3 14
The Hershey Company announced quarterly dividends of $0.535 on the Common Stock and $0.486 on the Class B Common Stock. The dividends are payable December 15, 2014, to stockholders of record November 25, 2014.