Hormel Foods earnings up despite avian influenza losses

Hormel Foods reported a record fourth quarter performance with net earnings of $187.2 million for the fourth quarter of fiscal year 2015, up from the $171.3 million reported during the fourth quarter of fiscal year 2014. The company made this financial progress in spite of the losses its Jennie-O Turkey Store segment faced in the wake of the 2015 avian influenza outbreak.
The operating profit for Jennie-O Turkey Store for the quarter was down 23 percent, while volume was down 21 percent and dollar sales were down 18 percent.
More than offsetting those losses were strong performances in the Grocery Products division, Refrigerated Foods division and Specialty Foods division, with operating profits up 57, 27 and 63 percent, respectively.
“I am proud of the excellent fourth quarter delivered by our team, achieving record earnings for the tenth straight quarter. We reported record bottom line results for the full year, with fiscal 2015 adjusted net earnings up 19 percent over last year and all five segments registering earnings growth,” said Jeffrey M. Ettinger, Hormel Foods’ chairman of the board and CEO. “We did face some headwinds during the year, including lower revenues impacted by declining pork markets and the loss of sales and operational efficiency related to highly pathogenic avian influenza in the Jennie-O Turkey Store segment. Our experienced team navigated these challenges to post this impressive bottom line performance.”