Smucker 4Q Profit Drops After Coffee Deal
ORRVILLE, Ohio (AP) — J.M. Smucker Co.'s fourth-quarter profit fell 21 percent as it bought Rowland Coffee Roasters and took additional restructuring costs.
The maker of Folger's coffee, Jif peanut butter and its namesake jams said Thursday that its net income fell to $94.9 million, or 82 cents per share, for the quarter ended April 30 from $120.6 million, or $1.01 per share, a year ago.
Excluding one-time charges, the company earned $1 per share. That was a penny a share more than the 99 cents a share that analysts surveyed by FactSet expected.
Smucker's revenue rose 11 percent to $1.19 billion from $1.07 billion a year ago. Analysts expected revenue of $1.16 billion.
Smucker said restructuring charges reduced its profit by 18 cents per share. Similar charges have hit the company's results in last few quarters. Acquisition costs reduced its profit by another 6 cents per share. In May, Smucker paid $360 million to acquire privately-held Rowland Coffee Roasters, and that acquisition was included in its fourth-quarter results.
Retail coffee revenue grew 21 percent to $505.3 million, the company said. Revenue from its retail consumer business slipped 2 percent after the company sold its potato products unit. Revenue from the retail oils and baking market rose 11 percent to $181.3 million, and revenue from special markets increased 8 percent to $234.3 million.
The company's annual net income fell 3 percent to $479.5 million, or $4.05 per share, from $494.1 million, or $4.15 per share. Revenue grew 5 percent to $4.83 billion from $4.61 billion.
Food makers like Smucker have been coping with higher commodity costs for everything from fuel to coffee beans by raising prices. The company has raised prices on its U.S. coffee products four times this year alone, and it said those price increases and the Rowland Coffee deal will boost its revenue by about 20 percent.
The company said it expects to earn $5 to $5.15 per share in fiscal 2012, excluding one-time costs that are expected to total 55 to 60 cents per share. Its forecast implies revenue of $5.79 billion.
Analysts are expecting a profit of $5.11 per share and revenue of $5.18 billion.
Its shares rose 11 cents to $76.50 in pre-market trading.