Milling & Baking News - June 3, 2008 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JUNE 3, 2008 / Flowers net up 26%; major executive changes to adapt operating structure NEWS The 2007 farm bill: better late than never? Story on Page 40 LATE NEWS International group sees further price strength PARIS - While projected to decline from recent peaks, agricultural commodity prices over the next 10 years are expected to exceed above averages of the past decade, according to an Agricultural Outlook from the Organization for Economic Cooperation and Development and the United Nations' Food and Agriculture Organization released last week. In comparing averages of the coming decade with those of the past decade, real prices are projected to increase, including less than 10% for rice and sugar; less than 20% for wheat; about 30% for butter, coarse grains and oilseeds; and more than 50% for Continued on Page 8 THOMASVILLE, GA. - Net income at Flowers Foods, Inc. rose 26% in the first quarter ended April 19 versus the same period a year ago, while sales were up 11%. In addition to its financials, Flowers Foods announced several key management appointments as well as a realignment of its operating structure. Net income of Flowers Foods in the quarter ended April 15 was $35,783,000, equal to 39c per share on the common stock, which compared with $28,493,000, or 31c per share, during the first quarter last year. Net sales in the first quarter were $676,707,000, up from $609,947,000 in the same period a year ago. George E. Deese, chairman, president and chief executive officer, said the company, in the face of serious challenges, enjoyed unit growth of 2.6% in the quarter with increased sales to quick-service restaurants helping offset lighter sales to casual dining providers. "We continue to face the most dramatic cost increases the baking industry has ever experienced, but our team remains focused on executing our strategies, further improving our efficiencies, taking costs out of our business wherever possible, and maintaining the quality and value of our products," he said. Updating its guidance for the full year, Flowers projected earnings of $1.15 to $1.23 per share, up from earlier guidance of $1.07 to $1.17. Its updated sales guidance was raised to $2,220 Continued on Page 12 Executive Strategies: Purchasing Charles A. Stroda, Snyder's of Hanover: A passion that's in his blood T o Charles A. Stroda, director of purchasing at Snyder's of Hanover, Hanover, Pa., work for a grainbased foods company was anything but an arbitrary career choice. Instead, with wheat industry involvement beginning when he was a small child, Mr. Stroda said his passion for the business courses through his veins. "I really think it's in the blood, growing up around it my entire life," he said. "You find it difficult to let go, once it's there." A native of Herington, Kas., just east of Salina, Mr. Stroda was raised on a wheat farm. But his most enduring wheat memories from his childhood do not emanate from the Strodas' cultivation of the crop. "Our family also had a large custom harvesting operation," he said. "I worked for nine years every summer harvesting wheat, from when I was 14 Continued on Page 33

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Milling & Baking News - June 3, 2008