Smucker beats Street despite higher commodity costs

(Reuters) - Peanut butter and jelly maker J.M. Smucker Co (SJM.N) posted better-than-expected quarterly results, as price increases and acquisitions helped offset rising commodity costs.

Smucker, known for its namesake jellies and jams, has raised prices of its products over the last several months as it grapples with soaring commodity costs.

Smucker reported net income of $42.3 million, or 77 cents a share, for the first quarter ended July 31, compared with $40.8 million, or 71 cents a share, a year earlier.

Excluding restructuring, merger and integration costs, the company earned 82 cents a share.

Net sales rose 18 percent to $663.7 million, boosted by its acquisitions of the Canadian Carnation canned milk business, Europe's Best Inc, and the Knott's Berry Farm food brand which altogether contributed about $31 million to sales.

Analysts on average expected earnings of 77 cents a share, before exceptional items, on revenue of $646.9 million, according to Reuters Estimates.

(Reporting by Dilipp S. Nag in Bangalore; Editing by Bernard Orr)