- Diluted earnings per share for the second quarter were $.57, helped by a gain on the disposition of the direct selling business
- Corporate unit volumes increased 1% in the second quarter, primarily driven by volume growth in the North American retail meat and foodservice business segments
- Significant progress made on all three pillars of the transformation: organizing the business around consumers and customers, achieving operational efficiency and focusing the portfolio
CHICAGO (Feb. 2, 2006) – Sara Lee Corporation (NYSE: SLE) today announced that net sales for the second quarter of fiscal 2006, ending Dec. 31, 2005, were $4.45 billion compared to $4.51 billion in the prior year’s second quarter, a decrease of 1%. During the second quarter, sales and unit volumes grew in four out of the eight business segments, specifically North American retail meats, North American retail bakery, Sara Lee Foodservice and international beverage.
Diluted earnings per share (EPS) were $.57 for the second quarter of fiscal 2006, compared to $.41 for the year-ago period. A gain on the divestiture of the direct selling business and a related tax benefit increased fiscal 2006 second quarter diluted EPS by $.28 and $.07 per share, respectively. However, charges related to the implementation of the company’s transformation plan and business exit activities reduced second quarter diluted EPS by $.08 per share. Operating results also were negatively impacted by various other factors including unfavorable foreign currency exchange rates, higher commodity, packaging and energy costs, and lower unit volumes at several businesses. Despite these factors, the North American retail meats, international bakery and branded apparel business segments reported higher operating segment income in the second quarter.