Los Angeles, 18 August - Hershey Co warned Friday that its 2008 profit would be at the low end of its forecast range and cut sales and earnings growth projections for 2009, sending its shares down more than 5 percent.
The maker of candy and chocolate also said it would raise prices over its entire domestic product line by about 10 percent to offset a portion of "significant increases" in costs for such things as ingredients, packaging materials and fuel.
Citing current economic and market conditions, Hershey said it expects full-year earnings per share to be "toward the lower end" of its previously forecast range of $1.85 to $1.90 per share.
Hershey said it expects to see 2008 net sales growth of 3 percent to 4 percent.
"Consumers are likely to see higher every-day and promotional retail prices as we implement the price increase and, as a result, we expect volume in the fourth quarter and next year to be lower than previously estimated," Hershey said in a statement.
The company lowered its 2009 net sales growth projection to 2 percent to 3 percent, versus its previous call for growth of 3 percent to 5 percent.
"Therefore, we continue to expect that earnings per share-diluted from operations in 2009 will increase, however, at a rate below our long-term objective of 6 percent to 8 percent growth," the company said.
Shares in Hershey closed at $41.62 on the New York Stock Exchange and fell to $39.30 in extended trade.