Hormel resultsThis article was originally published in Foodnews
HORMEL Foods has posted a 3.2% increase in net sales for the fourth quarter at USD2.17 billion, but fell short of analyst forecasts that the figure could be more like USD2.22 billion. The firm, which produces the Spam canned meat brand, is still suffering from high grain costs, and thus higher feed prices. It is planning to reduce harvest levels in its pork and turkey businesses in expectation of volatile protein costs over the coming year. Nonetheless, the company has also reported that it hit its “Go for USD2.00 billion by 2012” challenge, whereby it aimed to earn at least USD2.00 billion in total sales from new products created since 2000 by the end of fiscal year 2012.