Smucker Profit Margins Narrow

NEW YORK - Jun 16/05 - SNS -- The J. M. Smucker Company reported net income of U.S. $22.1 million on sales of $491.5 million during the fourth quarter ending April 30, compared to a net of $22.2 million on sales of $312.4 million during the same quarter the previous fiscal year.

This lifted net income for the 2005 fiscal year to $129.1 million on sales of $2,043.9 million, compared to $11.4 million on sales of $1,369.6 million during the 2004 fiscal year.

Smucker said the acquired Multi foods businesses contributed $154.1 million to sales in the fourth quarter of 2005. Excluding the contribution of Multi foods, sales were up 8%.

However, sales growth and improved margins on the Company's existing business and the addition of Multi foods were mostly offset by merger and integration costs, an increase in restructuring expenses, start-up costs at the Company's Uncrustables facility in Scottsville, Kentucky, and an increase in interest expense over the fourth quarter of last year.

Subscribers can read the full text of the article by Clicking here