June 5 Folgers Coffee maker J.M. Smucker Co
reported a 9 percent drop in quarterly profit, as lower
coffee prices hurt sales.
Net income fell 9 percent to $118.5 million, or $1.16 per
share, in the fourth quarter ended April 30 from $130.3 million,
or $1.22 per share, a year earlier.
Excluding items, the company earned $1.21 per share.
Net sales fell 8 percent to $1.23 billion, hurt by a 12
percent drop in sales in its U.S. retail coffee business as it
cut prices to pass on lower green coffee costs realized during
The company sells Folgers and Dunkin Donuts packaged coffee
in its retail coffee business. Sales volumes for both brands
rose 1 percent in the quarter, the company said.
Analysts on average had expected Smucker to earn $1.16 per
share on sales of $1.24 billion, according to Thomson Reuters
The company, which also makes Jif peanut butter and Crisco
Oils, forecast adjusted earnings of $5.95-$6.05 per share on net
sales growth of about 5 percent for the year ending April 2015.
This implies revenue of about $5.89 billion, according to
Analysts on an average were expecting earnings of $5.98 on
revenue of $5.77 billion.
(Reporting by Siddharth Cavale in Bangalore; Editing by Joyjeet