Hormel Foods Corp announced the largest profit sharing distribution ever made to its employees. More than $15.8 million is being distributed to eligible hourly and salaried employees, a Thanksgiving Eve Day tradition that started 69 years ago in 1938 by Jay C Hormel.
The Austin MN-based food company reported fiscal 2007 fourth quarter net earnings of $101.2 million, up 12 percent from earnings of $90.0 million a year earlier. Sales totaled $1.66 billion, versus $1.56 billion in fiscal 2006.
For the 12 months ended Oct 28, 2007, net earnings were $301.9 million, a 6 percent increase compared with $286.1 million a year ago. Sales totaled $6.19 billion, an 8 percent gain from $5.75 billion in the same period a year ago.
Hormel also increased its annual dividend from 60 cents to 74 cents—a record gain. The new rate of 18.5 cents, to be paid February 15 to holders of record January 19, marks the firm’s 42nd annual dividend increase.
"The strength of the fourth quarter’s results provides good momentum heading into fiscal 2008," said Jeffrey M Ettinger, chairman of the board, president, and chief executive officer. "I was encouraged to see that despite significantly higher grain markets, Jennie-O Turkey Store increased year-over-year segment profit this quarter."