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Smucker says sales of jam, coffee, peanut butter slipped in latest, outlook disappoints

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ORRVILLE, Ohio — J.M. Smucker said sales of its jams and jellies, Folgers coffee, Pillsbury baking mixes and frostings, Crisco shortenings and Jif peanut butter all fell in its latest quarter, and its outlook was short of Wall Street estimates.

The company's shares lost $4.44, or 3.8 percent, to close $113.76. Smucker was one of the largest decliners on the S&P 500.

Consumers have been moving away from popular packaged foods in favor of products they consider less processed. It's led to big changes at companies like General Mills Inc. and Campbell Soup Co. During the fourth quarter Smucker completed a $3.2 billion purchase of Big Heart Pet Brands, the maker of Meow Mix, Kibbles 'n Bits, and other products.

Smucker has struggled with declining sales volumes, blaming tough competition and ineffective promotions. In the fourth quarter it said volumes for Folgers coffee continued to fall, and both sales and prices of Smucker's, Jif, Crisco and Pillsbury products were down. Its overall fourth-quarter sales climbed 17 percent, however, because of the Big Heart Pet Brands deal.

Smucker expects to report net income of $5.65 to $5.80 per share in its current fiscal year. FactSet says analysts expect $5.85 per share on average.

The Orrville, Ohio-based company said Thursday it lost $90.3 million, or 82 cents per share, in the fiscal fourth quarter. Excluding costs related to the Big Heart purchase, debt retirement costs, and other one-time items, Smucker said it earned 98 cents per share over the three months that ended on April 30. Its revenue totaled $1.45 billion.

Analysts surveyed by Zacks Investment Research expected a profit of 99 cents per share and $1.32 billion in revenue.

The company's annual profit fell 39 percent to $344.9 million, and sales edged up 1 percent to $5.69 billion.

Smucker shares have climbed 17 percent in 2015, while the Standard & Poor's 500 index has climbed nearly 3 percent.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SJM at http://www.zacks.com/ap/SJM

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Keywords: Smucker, Earnings Report

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