Volatile Markets Lower Hormel's 2008 Earnings

SUGAR LAND--December 2, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--Hormel Foods Corporation (NYSE:HRL) (Austin, Minnesota) announced earnings for the fourth-quarter and fiscal year 2008 last week. Although sales were up 12% for the quarter, the company's quarterly net earnings fell 32%, from $101.2 million in 4Q07 to $67.8 million this year. Volatility in both the commodities markets and consumer buying patterns has caused rapid change in the economic situation for many U.S. food producers. In a conference call regarding the earnings, Jeffrey M. Ettinger, Hormel's President and CEO, said, "Without a question, we are in a unique and challenging economic environment. Demand has been impacted by the trend to more at-home dining and through changing consumer preferences at retail. These circumstances, coupled with spikes in certain raw materials costs, took a toll on our earnings this quarter."

Other companies featured: Pilgrim's Pride Corporation (NYSE:PPC), Tyson Foods (NYSE:TSN)