Milling & Baking News - July 1, 2008 - 18

Financial Results

J.M. Smucker net climbs 8% in '08
ORRVILLE, OHIO - Net income at
J.M. Smucker Co. in the fiscal year
ended April 30 totaled $170,379,000,
equal to $3.03 per share on the common stock, up 8% from $157,219,000,
or $2.79 per share, in fiscal 2007.
According to Smucker, 2008 results
included restructuring and merger and integration costs of 15c per
share, which compared with 13c per
share in similar costs during fiscal
2007.
Net sales were $2,524,774,000, up
18% from $2,148,017,000 in fiscal
2007. Eagle Family Foods Holdings
Inc., acquired in May 2007, contributed $236,200,000 in sales during fiscal 2008, with total acquisitions accounting for $279,700,000 in sales.
"Our performance this year is especially gratifying in a time of unprecedented cost increases," said
Tim Smucker, chairman and co-chief
executive officer. "Despite raw material cost increases over $150 million, we completed another record
year with both sales and earnings
exceeding our long-term strategic
growth goals. It is our focus on the
consumer, and meeting their needs
with quality products, that provides
the basis for our continued success
and enhances our opportunities for
continued growth."
Sales in the retail market, includ-

ing the Jif, Crisco, Pillsbury, Hungry Jack and Martha White brands,
were $1,874,500,000, up 21% from
$1,547,100,000 in fiscal 2007.
Sales in the consumer strategic
area increased 9% for
the year, led by gains
in fruit spreads, Uncrustables and Hungry
Jack products. Sales
of Uncrustables in all
channels rose 21% in
2008, exceeding $100
million in revenue, the
company said.
Excluding the contribution of $198.9 million from the acquired
Eagle business, consumer oils and baking
sales rose 8%.
Sales in the special
markets, excluding divested businesses, were $650,200,000,
up 24% from $525,800,000 last year.
For the fourth quarter ended April
30, net income at J.M. Smucker was
$37,051,000, or 68c per share, down
13% from $42,499,000, or 76c per
share, in the same period a year ago.
Last year 's fourth-quarter results
received a $15 million boost due to
a peanut butter competitor that was
temporarily out of the market because of a product recall. Net sales

Dakota Growers Pasta net eases
8% in third quarter
CARRINGTON, N.D. - Net income
of Dakota Growers Pasta Co. in the
third quarter ended April 30 was
$1,741,000, equal to 17c per share on
the common stock, down 8% from
$1,882,000, or 14c per share, in the
third quarter of fiscal 2007.
Net revenues of the company were
$78,538,000, up 70% from $46,084,000
in the third quarter of the previous
year.
For the first nine months of fiscal 2008, net income was $5,019,000,
or 46c per share, up 17% from
$4,273,000, or 32c per share, in fiscal
2007. Revenues for the nine months
were $195,330,000, up 37% from
$142,190,000.
"The increase (in revenues) resulted from higher pasta per unit selling
prices and, to a lesser extent, higher
mill sales prices," the company said
in a 10-Q report filed June 16 with the
18 / July 1, 2008

Milling & Baking News

Securities and Exchange Commission.
"Benefits derived from higher selling
prices were partially offset by higher
durum costs. Durum prices have continued to increase significantly during fiscal year 2008 when compared
to fiscal year 2007 prices.
"The company has been successful

were $589,998,000, up 20% from
$493,472,000.
Earlier this month, Smucker entered into a definitive agreement with
The Procter & Gamble Co. to merge
P.&G.'s Folgers coffee business into
Smucker. The transaction is expected
to close in the fourth quarter of calendar 2008.
In addition to the Folger's business, Mr. Smucker said during a June
19 conference call with
securities analysts that
recently introduced products will play a key role
in fiscal 2009, including
Crisco Olive Oil, Crisco
Puritan Canola Oil with
Omega-3 DHA, Pillsbury
reduced sugar cake mixes,
frostings and brownies,
and Martha White Whole
Grain Muffins. The company
also is testing Hungry Jack Refrigerated Potatoes, Hungry Jack Frozen
Biscuits and Hungry Jack Snacking
Waffles, he said.
Looking to 2009, Smucker said it
expects raw material costs in 2009 to
increase approximately $150 million
over 2008 levels with soybean oil,
wheat, peanuts, and certain fruits
accounting for the majority of the
increase. The company also said it
plans to increase its 2009 marketing
investment by 20%. MBN
in obtaining sales price increases to
offset higher durum and other input
costs."
Overall, Dakota Growers said pasta
sales volumes for the third quarter
rose 11% along with an increase in
pasta per unit selling prices of 44%.
Revenues from the retail market rose
$9,500,000, or 47%, while food service
revenues climbed $4,500,000, or 32%.
Ingredient sales jumped $11,300,000,
or 139%, during the quarter. MBN

I.B.C. suffers $9.4 million loss in period
KANSAS CITY - Interstate Bakeries
Corp. narrowed its loss in the fourweek period ended May 3 to $9,409,531
from $15,398,111 in the four-week period ended April 5, according to an
8-K filed June 18 with the Securities
and Exchange Commission.
Sales in the four weeks ended May
3 were $224,110,192, up 7% from
$210,181,623 in the previous four-week
period. The total marked the highest
revenue figure since the four-week pe-

riod ended Aug. 25, 2007.
Operating expenses finished at
$109,277,010, up from $107,367,922 in
the previous period. Ingredients, packaging and outside purchasing costs
were $68,663,351, up from $60,543,078,
while direct and indirect labor costs
rose to $36,379,015 from $34,441,412 in
the previous period.
I.B.C. recorded charges of $3,214,339
from restructuring and reorganization for
the four-week period ended May 3. MBN
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Milling & Baking News - July 1, 2008

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