Downers Grove, Illinois, Feb. 6, 2008 – Sara Lee Corporation today announced that net sales for the second quarter of fiscal 2008, ending Dec. 29, 2007, were $3.5 billion, an increase of 9.7%compared to $3.2 billion in the prior year period. Net sales grew in all six business segments, with particularly strong growth in international beverage (+21.7%), international bakery (+17.6%), household and body care (+14.3%) and North American retail bakery (+9.2%). The corporation's adjusted net sales1 – which exclude the impact of foreign currency exchange rates and acquisitions/divestitures – increased 4.2% in the second quarter of fiscal 2008, also with growth across all six business segments, most notably in North American retail bakery (+9.2%), international beverage (+7.7%) and international bakery (+4.3%). For the first six months of fiscal 2008, Sara Lee reported net sales of $6.6 billion, up 9.0% over the comparable period last year, while adjusted net sales rose 4.3%.
“During the second quarter, we benefited from our ongoing investment in the company as sales growth continued across all business segments and we gained share for many of our largest brands,” said Brenda C. Barnes, chairman and chief executive officer of Sara Lee Corporation. “Our strategic approach to pricing, combined with the impact of procurement and continuous improvement savings, helped offset significantly increased input costs. In addition, the higher advertising and promotion spending that supported more than 40 new products launched this quarter helped us strengthen our position as a marketplace leader.”
Sara Lee reported operating income of $233 million for the second quarter of fiscal 2008, compared to an operating loss of $2 million in the second quarter of fiscal 2007. Adjusted operating income – which excludes the impact of significant items, foreign currency exchange rates and acquisitions/divestitures – was $254 million in the second quarter of fiscal 2008, compared to $255 million in the prior year’s period. For the first six months of fiscal 2008, operating income was $527 million, compared to $252 million in the first six months of fiscal 2007. Adjusted operating income declined 0.7% in the first six months of fiscal 2008, from $443 million to $440 million.
Diluted EPS as reported were $.25 per share in the second quarter of fiscal 2008 versus a loss of $.08 per share for the year-ago period. Diluted EPS were impacted by various significant items, as shown in the table on page 2, that on a year-over-year basis increased diluted EPS as reported by $.32 per share. The remaining increase in diluted EPS of $.01 per share was primarily the result of favorable foreign currency exchange rates. In the first six months of fiscal 2008, diluted EPS as reported were $.53, compared to $.36 for the first half of fiscal 2007.