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148 posts categorized "Hormel news"

October 28, 2009

Hormel's new deal south of the border

Here's a deal that Austin-based Hormel Foods kicked out a release about Monday evening. Unfortunately, a bad bug of some kind knocked me out of commission Tuesday, so this is the first time I have been conscious enough to post this.

Images Anyway, Hormel has struck a deal with Herdez Del Fuerte, a Mexico City-based food company, to form a joint venture to market food to U.S. customers. The resulting company is called MegaMex Foods, LLC and it is based in Chino, Calif.

I've posted on this deal before. The reason Hormel is touting this now is that the deal, which was first announced publically in June, has now officially closed.

Here's some from the release on this deal:

Hormel Foods and Herdez Del Fuerte announced the closing of a 50/50 joint venture agreement to create MegaMex Foods, LLC, which will market Mexican foods in the United States.

Spamwbacon The venture significantly expands the existing agreement between the two
companies and produces a portfolio with initial revenue of about $200 million.
MegaMex Foods has a comprehensive portfolio that includes brands such as
CHI-CHI`S, HERDEZ, LA VICTORIA, EMBASA and DOÑA MARÍA, among others, which
resonate with Mexican-American and mainstream consumers of Mexican foods.
--------

MegaMex Foods is a free-standing entity with an independent management team
based in Chino, Calif. MegaMex Foods will optimize efficiencies by leveraging
core competencies of the parent companies, such as manufacturing, research and
development and the supply chain.




June 19, 2009

Hormel's new "MegaMex" deal

Here's some from a press release this a.m. from Austin's favorite Fortune 500 company:


Hormel Foods and Herdez Del Fuerte today announced a definitive agreement to create MegaMex Foods, a 50/50 joint venture to market Mexican foods in the United States.:

The venture will significantly expand the existing agreement between the
two companies and produces a portfolio with initial revenue of about $200
million. The comprehensive portfolio includes brands and products, such as CHI-CHI’S®,  HERDEZ®, LA VICTORIA®, EMBASA® and DOÑA MARÍA®, among others, which resonate with Mexican-American and mainstream consumers of Mexican foods.
MEGAMEX_FOODS_FINALsmaller_no_background
“This expanded, long-term agreement with Herdez Del Fuerte is an example of how we continue to look to diversify our product portfolio,” said
Jeffrey M. Ettinger, chairman of the board, president and chief executive
officer at Hormel Foods. “MegaMex Foods will have the scale and skill set
to establish leadership in Mexican foods and grow the category. The
collaboration should allow us to better serve both the growing U.S.
Hispanic population and the vast numbers of the general population who love Mexican food.”

“MegaMex Foods will combine the premier Mexican food products and brands of Herdez Del Fuerte with the strength in manufacturing and distribution of Hormel Foods,” said Juan Marco Gutiérrez Wanless, chairman at Herdez Del Fuerte. “This is an important step toward delivering on our ongoing growth and profitability strategy and making us stronger for the future, as we increase presence nationwide.”
Spammy2
In order to provide focus to the business, MegaMex Foods will be a
free-standing entity with an independent management team based in Chino, Calif. MegaMex Foods will optimize efficiencies by leveraging core
competencies of the parent companies, such as manufacturing, research and development and the supply chain.

May 21, 2009

Hormel reports record earnings

Here's some from the earnings report Austin stalwart Hormel Foods just kicked out. It looks like it recovered from the Swine Flu. I'll know more once I read this piggy in depth.

The company reported fiscal 2009 second quarter net earnings of $80.4 million, up 4 percent from earnings of $77.6 million a year earlier. Diluted earnings per share for the quarter were $.59 this year compared to $.56 per share last year and sales totaled $1.6 billion, even with fiscal 2008. For the six months ended April 26, 2009, net earnings were $161.8 million, or $1.20 per diluted share, the latter of which was even with last year. Sales totaled $3.3 billion, up 2 percent, from $3.2 billion in the same period last year.

COMMENTARY

"We are pleased to report record earnings for the quarter. Our Grocery Products segment again delivered increases in sales and segment profit, with strong sales of canned meats and Mexican products. Our Jennie-O Turkey Store segment continues to rebound, despite difficult market conditions, as they were faced with even lower commodity meat prices than in the first quarter," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.

"Our Refrigerated Foods segment experienced another difficult quarter, as continued weak cut-out margins led to losses in our pork operations. The overall weakness in this segment masked a very strong performance by our Meat Products group, which achieved high single-digit sales increases of its branded portfolio of products. Our Specialty Foods segment was essentially flat, while our All Other segment had weaker results," remarked Ettinger.

"We have seen a continuation of some of the same trends we saw in the first quarter, as consumers seek value in retail channels while foodservice sales remain soft. Unlike the first quarter, however, we have seen improvement in sales of some of our convenience items, including our refrigerated entrees and our COMPLEATS microwave meals," commented Ettinger.

February 24, 2009

S&P 500 now = Spam&Pork 500

Spamwbacon Goodbye American Capital (a phrase spoken by many this year) and hello the Big Hog of Austin.


Standard & Poor bumped American Capital Ltd. off its S&P 500 and herded Hormel Foods into that spot.

That will go live on March 3,after the market closes.

I wonder what kind of impact this will have on Hormel?

February 19, 2009

Hormel 1Q earnings - rolls off counter onto floor....

And the dog chewed on them for a bit.


But it wasn't unexpected.

Here's the details:
Z130282070

Hormel Foods Corp., maker of Spam and other food products, said Thursday that its fiscal first-quarter profit fell 8 percent as its refrigerated foods segment was partly weighed down by bigger-than-expected hog costs.


Earnings dropped to $81.4 million, or 60 cents per share, compared with $88.2 million, or 64 cents per share, a year ago.


“As anticipated, we started out the year with weaker operating results,” said Chief Executive Jeffrey M. Ettinger this morning. 


He said Hormel is still on track to hit its 2009 profit outlook of $2.15 to $2.25 per share.
Revenue rose 4 percent, to $1.69 billion from $1.62 billion.


The refrigerated foods division, which accounts for 33 percent of Hormel’s total operating profit, saw its own operating profit plummet 27 percent. Aside from hog costs, the unit was also hurt by weaker-than-expected primal markets. 


Operating profit for the specialty foods segment, which accounts for 11 percent of Hormel’s total picture, dropped 16 percent.


Sales of nutritional powders from Century Foods plunged, as did packaging sales of Hormel Specialty Products microwave lines. The bright spot was Diamond Crystal Brands, which saw sales of its nutritional products — including the sugar substitute Splenda — climb.


The grocery products division fared better, with operating profit up 9 percent on strong sales of Spam and Dinty Moore stews. Those increases covered for a drop in sales of Hormel’s Compleats microwave meals.


Though Jennie-O Turkey Store’s operating profit fell 16 percent, Ettinger said the unit was “doing a good job of addressing the difficult market conditions, including very weak commodity meat markets and higher input costs that continue to work their way through the system.”


Analysts expect full-year earnings of $2.21 per share, with the low end  estimates at $2.18 per share and the high end at $2.25 per share.

February 16, 2009

Biz this week - BAH, support group, affordable housing $ and Hormel

After a couple weeks devoid of much activity (other than layoffs), this week is shaping up to be pretty packed with business related stuff on local, state and federal levels. 

Calendar image
See you all at the Home Federal Business After Hours bash.

Tuesday
 WorkLife, a support group for those who are unemployed, underemployed, considering a career change or wish to share about their jobs will meet from 7 a.m. to 7:45 a.m. in the north lobby of Oasis Church at 1815 38th St. N.W. in Rochester. The featured guest will be Dave Wheeler, branch manager of Manpower. For more information contact Preston Hollister at (507) 398-9909 or e-mail phollister@g.com.

• DFL Sen. Amy Klobuchar will have a news conference about affordable housing grants at 10 a.m. at the Kahler Hotel in Rochester. She then heads to Rushford, where she will visit Tri-County Electric Cooperative's new headquarters and discuss energy conservation. - From political reporter Heather Carlson.

Business After Hours, a networking event for local businesses is scheduled from 5 p.m. to 7 p.m. at Home Federal Bank, 2048 Superior Dr. N.W., Suite 400. The Rochester Area Chamber of Commerce sponsors this monthly get-together. For this one, the Chamber’s Diversity In Business team is also inviting all new and prospective entrepreneurs to this event.


How to Choose the Right Business Organization is a Rochester SCORE-sponsored class scheduled from 7 p.m. to 9 p.m. in Room 319 in the Northrop Community Education Center, 201 Eighth St. N.W. Instructors will be Mark Utz and Roger Stahl, attorneys at law. The fee is $20 per person. For information, call the community education office of Rochester Public Schools at 328-4000 or visit www.rochesterce.org/adults.

WednesdayThe Bureau of Labor Statistics releases U.S. Import and Export Price Indexes at 7:30 a.m. in Washington, DC

Commerce Department releases housing starts for January, 8:30 a.m.

• Federal Reserve releases industrial production for January, 9:15 a.m.

Deere & Co. reports first-quarter financial results.


Thursday

• Hormel Foods Corp. reports first-quarter financial results.

Labor Department releases weekly jobless claims, 8:30 a.m.

Labor Department releases the Producer Price Index for January, 8:30 a.m.

Freddie Mac, the mortgage finance company, releases weekly mortgage rates.

CVS Caremark Corp. reports fourth-quarter financial results.

FRIDAY, Feb. 20

• The Bureau of Labor Statistics releases U.S. Real Earnings Index at 7:30 a.m. in Washington, DC

Labor Department releases Consumer Price Index for January, 8:30 a.m.

November 25, 2008

Hormel 4Q, 2008 earnings - cooked, but not extra crispy

It is bad, but not worse than expected.


Austin-based Hormel Foods reported this morning that its 2008 earnings per share dropped by 4 percent and its fourth-quarter earnings fell 33 percent, but still topped Wall Street expectations.


On top of higher costs that sucked down the Jennie-O Turkey Store’s operating profit by 44 percent for the fourth quarter and the usually-strong Grocery Products down by 3 percent, Hormel took a $20 million loss from an investment program.

Spammy2

“As we previously announced (in October), the recent substantial decline in global financial markets negatively impacted our rabbi trust investment performance,” wrote  Hormel chief executive officer Jeffrey M. Ettinger in the report issued this morning. “These investment losses do not affect the company’s cash flow, nor does the company have any obligation to recapitalize the trust funds,”


The rabbi trust, which is a tax deferred financial plan, lost a total of $29 million for the year.


Jennie-O had its stuffing pulled out for the fourth quarter in a row, though a 44 percent drop was not as dramatic as the 66 percent decrease in the third quarter. It ended the year down by 27 percent, even though sales were up 9 percent.


Recent media reports have spotlighted the increasing sales of Hormel’s Spam as a sign of the tough economy. However, the same economy ate up the gains the Grocery Products segment made for the quarter. 


“Despite strong sales of the Spam family of products and other canned items, our Grocery Products segment had an off quarter. The lower results were driven primarily by higher beef and pork trim costs, but also as a result of a slowdown of our Hormel Compleats microwave meal business,” wrote Ettinger.

November 03, 2008

Hormel Corp. launches new Web site

Here's a tidbit from the PB's staff in Austin:


Pantrycallout Hormel Foods. Corp. – the Austin-based Fortune 500 food giant – launched this morning its first Web site dedicated to the company’s largest brand — Hormel.

In the past, Spam, Dinty Moore and Jennie-O Turkey Store all have had a footprint on the Web for a long time.

The www.hormel.com site is designed as an interactive kitchen, with a center island and cupboards that open and close with windows that show the different times of day and the changing seasons. Consumers can research the Hormel brand and products.

Nutrition and ingredient information is provided as well as a product locator (?).

A section for convenient meals gives various meal solutions. A “protein made easy” section provides information on the advantage of adding meat proteins to a healthy diet. The knowledge center educates consumers about different cuts of meat and how to select the best cut for meals.

October 22, 2008

Local stocks up and down

Tossed on the waves of the ever-changing market, locally based and locally tied stocks are rising and falling like an out of control elevator.

I know that is not news, but here's a quick snapshot of some of these stocks at 11 a.m. Oct. 22 in the wake of Wachovia reporting a $24 billion loss:

IBM 85.48 -3.38 (-3.80%) 115.72B

HRL Hormel 29.24 +0.15 (0.52%) 3.94B

FAST Fastenal 35.92 -1.33 (-3.57%) 5.33B

ROCM Rochester Medical 14.17 -0.05 (-0.35%) 168.14M

GGP General Growth Properties 3.44 -1.40 (-28.93%) 923.58M

HMNF Home Federal Bank 9.00 -0.11 (-1.21%) 37.51M

Seneca Foods 18.50 0.00 (0.00%) 140.44M

October 20, 2008

Hormel: 2008 earnings to be lower

Here's a quick note on Hormel Foods Corp., Austin's favorite Fortune 500 company, this morning. Earnings for 2008 will less that predicted earlier this year.
Spammy2
I think that is true of us all there days. Heh.

Anyway, here's how Bloomberg reported this:

Hormel Food Corp., the maker of Spam luncheon meat, said 2008 profit will be less than previously expected because of higher costs and a decline in its investments.

Profit in the year will be $2.03 to $2.09 a share, less than an earlier forecast of $2.22 to $2.28, Austin, Minn.-based Hormel said today in a statement. The average estimate of nine analysts surveyed by Bloomberg was $2.24.

The decline in global financial markets has hurt the performance of Hormel's Rabbi Trust investments, and earnings at the Jennie-O Turkey Store brand are experiencing a "shortfall," Chief Executive Officer Jeffrey M. Ettinger said in the statement. Costs also have been "greater than expected," he said.

Hormel rose 44 cents, or 1.3 percent, to $33.94 in New York Stock Exchange composite trading on Oct. 17. The shares have dropped 16 percent this year.

The company is scheduled to report complete earnings for the fiscal year on Nov. 25.

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