June 8 Folgers coffee maker J.M. Smucker Co
reported a better-than-expected quarterly profit on
Thursday, helped by cost-cutting, and said it would slash $100
million more in annual costs.
Smucker has resorted to cost cuts amid slowing demand for
its coffee products and stiff competition in its pet foods
Sales in its coffee business dipped for the fourth straight
quarter in the quarter ended April 30, hurt by weak demand for
Folgers, while lower sales of cat food brands such as 9Lives and
Meow Mix dragged down total pet foods sales by 5 percent.
But selling, distribution, and administrative expenses fell
5 percent to $334.4 million in the quarter, helped by a
restructuring program announced last year, which includes job
reductions and facility closures.
Smucker said it now expects annual cost cuts of $450 million
by fiscal year 2020.
The company's net income fell to $110.4 million, or 96 cents
per share, in the fourth quarter ended April 30, from $191
million, or $1.61 per share, a year earlier.
Smucker recorded a $57.5 million impairment charge and a
$21.5 million derivative loss in the fourth quarter.
Excluding items, the company earned $1.80 per share, beating
analysts' average estimate of $1.72, according to Thomson
Net sales dipped 1.3 percent to $1.78 billion, marking the
fourth straight quarter of decline, but narrowly beat analysts'
estimates of $1.77 billion.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sai