J.M. Smucker quarterly profit rises 29 percent

(Adds sales, forecast)

CHICAGO, Feb 16 (Reuters) - J.M. Smucker Co. (SJM.N) posted a 29 percent increase in quarterly profit on Friday, helped by price increases, market-share gains for most of its brands and a lower tax rate.

The maker of Smucker's jelly and Jif peanut butter said profit was $40.4 million, or 71 cents a share, in its fiscal third quarter, ended Jan. 31, compared with $31.3 million, or 54 cents a share, a year earlier.

Excluding restructuring charges, earnings were 72 cents a share. Analysts on average had forecast 69 cents a share, according to Reuters Estimates.

Sales fell 2 percent to $523.1 million, but were up 6 percent when businesses sold in September 2006 are excluded from the year earlier data. Like many food companies, Smucker has raised prices to offset rising costs of ingredients like flour.

"We expect the cost environment to remain difficult and we will continue to take actions to mitigate the cost increases," Richard Smucker, president and co-chief executive officer, said in a news release.

The company also said its goal is still to increase earnings per share in fiscal year 2007 by 4 percent over fiscal year 2006 earnings of $2.65, excluding one-time gains and charges.

Smucker shares closed at $48.33 on Thursday on the New York Stock Exchange. The stock is up almost 14 percent in the past year, compared with a 16 percent increase for the Standard & Poor's Packaged Foods index .15GSPFOOD.

((Reporting by Brad Dorfman, editing by Steve Orlofsky; Reuters Messaging: bradley.dorfman.reuters.com@reuters.net; 312-408-8133)) Keywords: SMUCKER RESULTS/

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