Posted at 11:32 a.m., Thursday, October 18, 2007
Hershey's profit drops 66 percent, cuts 2007 forecast
Associated Press
HARRISBURG, Pa. — The Hershey Co., the nation's largest candymaker, said today its third-quarter profit tumbled 66 percent as it spent heavily to streamline its operations and struggled with aggressive competition and slackening sales.Just two weeks after its chairman and chief executive announced he will leave, Hershey also slashed its 2007 forecast — the third such setback this year as the company struggles to recover from a year-long slump.Its shares fell more than 3 percent in afternoon trading.
The owner of Hawai'i-based Mauna Loa Macadamia Nut Corp. said it earned $62.8 million, or 27 cents a share, for the three months ending Sept. 30, versus a profit of $185 million, or 78 cents per share, in the same period a year earlier. The Hershey, Pa.-based company also makes Hershey's Kisses and Reese's candy.
Not counting costs to close six North American plants and shift more production to Mexico and contractors, Hershey said it would have earned $157.2 million, or 68 cents per share.That figure fell short of the consensus 71 cents per share forecast of analysts surveyed by Thomson Financial.
Third-quarter sales fell 1 percent to $1.4 billion from almost $1.42 billion a year ago. Analysts expected revenue of $1.44 billion.Its shares fell $1.40, or 3.2 percent, to $42.89 in afternoon trading Thursday after falling to a 52-week low of $42.27.
