Hershey earnings rise to $71.3m

Consolidated net sales were $1,171,183,000 compared with $1,105,437,000 for the second quarter of 2008. Net income for the second quarter of 2009 was $71,298,000 or $0.31 per share-diluted, compared with $41,467,000 or $0.18 per share-diluted, for the comparable period of 2008.

For the second quarters of 2009 and 2008, these results, prepared in accordance with generally accepted accounting principles, include net pre-tax charges of $42.7m and $39.3m, or $0.12 and $0.11 per share-diluted, respectively.

These charges were associated with the Global Supply Chain Transformation programme. Adjusted net income, which excludes these net charges, was $97,965,000 or $0.43 per share-diluted in the second quarter of 2009, compared with $66,952,000, or $0.29 per share-diluted in the second quarter of 2008, an increase of 48% in adjusted earnings per share-diluted.

For the first six months of 2009, consolidated net sales were $2,407,214,000 compared with $2,265,779,000 for the first six months of 2008. Reported net income for the first six months of 2009 was $147,192,000 or $0.64 per share-diluted, compared with $104,712,000 or $0.46 per share-diluted, for the first six months of 2008.

For the first six months of 2009 and 2008, these results, prepared in accordance with GAAP, include net pre-tax charges of $61.7m and $69.9m, or $0.17 and $0.20 per share, respectively. These charges were associated with the GSCT programme.

Adjusted net income for the first six months of 2009, which excludes these net charges, was $183,957,000, or $0.81 per share-diluted, compared with $150,867,000 or $0.66 per share-diluted in 2008, an increase of 23% in adjusted earnings per share-diluted.

Total GSCT programme costs to date are $591.7m. The forecast for total charges related to the programme has been narrowed and is now expected to be $640m to $665m, and includes $40m to $65m of non-cash pension settlement charges.

For 2009, total GAAP charges related to the GSCT programme are expected to be $85m to $120m, including non-cash pension settlement charges of $40m to $50m.

Source: The Hershey Company