Chicago, November 25, 2008 - Hormel Foods Corp posted a sharply lower quarterly profit Tuesday as costs continued to rise at its Jennie-O turkey business, and said it expects a slow start to fiscal year 2009.
The company, best known for its Spam lunch meat, also raised its annual dividend by 2 cents to 76 cents per share.
Profit for its fiscal fourth quarter, ended Oct. 26, fell to $67.8 million, or 50 cents a share, from $101.2 million, or 73 cents a share, a year earlier.
Sales rose nearly 12 percent to $1.86 billion.
Hormel cut its full-year earnings forecast in August due to rising costs at Jennie-O and again in October, citing the performance of a retirement trust that was roiled by the global financial crisis.