970821 Sara Lee Shows Profit Rises in FY97; Meats Division up 15.4%
August 7, 1997
Sara Lee Corp said operating profits increased in each of its four lines of business in fiscal 1997.
Packaged Meats and Bakery sales rose 15.4 percent to $1.9 billion in the fourth quarter, while operating income gained 10.5 percent to $134 million. For the year, its sales gained 16.6 percent to $7.6 billion and earnings rose 12.8 percent to $476 million.
Profit growth was particularly strong in packaged meats and foodservice during both periods, with double-digit gains reported, excluding acquisitions, Sara Lee said.
Bakery sales and profits declined in the quarter and year, reflecting a weak retail market for frozen baked goods in the United States.
Coffee and grocery sales for the fourth quarter rose 4.1 percent to $724 million, while operating income rose 2.5 percent to $100 million. For the year sales fell 2.9 percent to $2.8 billion while operating income rose 2.9 percent to $440 million.
Results reflect the negative impact of a stronger dollar, Sara Lee said. In local currencies, sales increased during both periods and profits were up more than 10 percent.
Household and Body Care fourth quarter sales rose two percent to $524 million and operating income gained 6.3 percent to $85 million. For the fiscal year, sales were up 0.3 percent to $1.8 billion and profits gained 6.4 percent to $228 million.
Personal products sales rose 0.7 percent in the fourth quarter to $1.8 billion and operating income rose 6.3 percent to $215 million. For the year, sales increased 1.5 percent to $7.5 billion and profits gained 4.4 percent to $761 million.
Earlier, Sara Lee reported earnings for fiscal 1997 ended June 38 of $1.0 billion or $2.03 a primary share, compared with year-ago earnings of $916.0 million or $1.83 a share. Sales for the year were $19.7 billion, up six percent from $18.6 billion a year ago.
For the fourth quarter, Sara Lee earned $280 million or $0.57 a primary share, up from $259 million or $0.52. Sales rose 6.5 percent to $4.9 billion from $4.6 billion.
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