Milling & Baking News - January 12, 2010 - 24

Stock Market Review 

Brenda C. Barnes, chairman and c.e.o., to
increase earnings-per-share guidance for
the full year to a range of $1.12 to $1.18 per
share, up from $1.03 to $1.09 per share.
Operating income for Sara Lee's
North American Retail business, which
includes its processed meats brands, was
$83 million for the quarter compared
with $54 million during the previous
year. The increase was primarily the result of lower input costs, favorable sales
mix, growth of the Jimmy Dean brand,
improvement in supply chain performance and Project Accelerate, and continuous improvement savings.

$83,627,000 in the same period a year
ago. Net sales were $1,105,158,000,
down 20% from $1,383,120,000. Seaboard said the operating income decline reflected fluctuation in marking
to market certain derivative contracts.
While about half the value of the June
2007 high of $2,699 per share, the 2009
closing price of $1,349 was still sharply
higher than lows set earlier in the decade. The price was up 811% from the
low of $148 set in December 2000.
Sara Lee Corp.
The share price of Sara Lee Corp. rose
24% in 2009, recovering a significant part
of the 39% decline sustained in 2008.
The December closing price of $12.18 remained a fraction of the Downers Grove,
Ill.-based company's all-time high closing price of $57.69 set in October 1998.
The company has spent the entire
decade shedding businesses in an effort to build shareholder value, and
the initiative continued into 2009. In a
move that would bring the company
ever closer to becoming purely a food
and beverage business, Sara Lee on
Sept. 25 said it had received a binding
offer of €1,275 million ($1,870 million)
for its global body care and European
detergents business. Sara Lee said the
businesses sought by Unilever generated annual sales of €750 million in fiscal 2009, accounting for about 50% of
sales and 55% of the adjusted operating
segment income of the International
Household and Body Care business.
Meanwhile, the company's North
American business units, primarily its
processed meats and food service operations, boosted earnings for the company
during the first quarter ended Sept. 26.
Net income was up 24%, prompting

Kellogg Co.
Beginning the year with an announcement that it would raise prices
on its ready-to-eat cereal, Kellogg Co.,
Battle Creek, Mich., saw share prices
advance 21% in 2009, fully recovering
from the 16% decline in 2008.
In January 2009, the company said it
would raise the prices on most of its cereal brands as well as Pop-Tarts toaster
pastries beginning Jan. 18.
"The effective price increase across
our product portfolio is in the low-tomid single digits," a company spokesperson said.
Through the first three quarters of
the year, Kellogg net income was up
7% from the same period in 2008.
The company's net income was up
6% in the third quarter, 12% on a currency-neutral basis. Based on those results, Kellogg raised its earnings guidance for 2009 to growth of 10% to 12%,
on a currency neutral basis, up from 8%
to 10%. For 2010, the company projected currency-neutral earnings growth
of 10% to 12%, a "second consecutive year of growth above long-term

annual targets," the company said.
"The current economic environment
has placed significant pressure on
our consumers," said David Mackay,
c.e.o. "However, the environment also
provided us with both the incentive
and the opportunity to build an even
stronger company for the future. We
are aggressively pursuing productivity initiatives as well as taking advantages of media deflation and efficiency
programs to invest even more back
into advertising to further drive the
long-term health of our brands."
Mr. Mackay said the cereal category overall grew about 2% during the
third quarter.
"Despite a competitive environment, category share growth in
measured channels was up 20 basis
points," he said.
General Mills, Inc.
General Mills, Inc., Minneapolis,
posted a share gain of 17% in 2009.
Coming on the heels of a 7% advance
in 2008, the company's two-year advance of 24% was best among large
cap grain-based foods companies.
The standout share price performance largely mirrored the company's operating results.
After beating analysts' forecasts in
the first quarter ended Aug. 30, the
company raised its fiscal 2010 earnings
guidance to $4.40 to $4.45, up from
$4.20 to $4.25. Three months later,
bolstered by strong results in its U.S.
Retail segment, the company raised
guidance again, to $4.52 to $4.57.
For the six months ended Nov. 29, the
company's net earnings totaled $986.1
million, or $3.01 per share, up 50% from
$656.7 million, or $1.96 per share, in the

24 / January 12, 2010 Milling & Baking News

-3%

-11%

Corn Products

Flowers Foods

Hain Celestial

5%
Maple Leaf

Kraft Foods

9%
ADM

11%
J&J Snack

Ralcorp Holdings

11%

13%
Seaboard

Pepsi Co.

15%
Lance

12%

17%
General Mills

George Weston

21%
Kellogg

13%

23%
Bunge

Campbell Soup

24%
Sara Lee

40%
ConAgra

28%

42%
J.M. Smucker

Panera Bread Co.

46%
Grupo Bimbo

56%
AIPC

76%
Krispy Kreme

99%
Tasty Baking

Bridgford

MGP Ingredients

194%

1042%

Grain-based Food Share Index companies:
stock price change in 2009

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - January 12, 2010

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