Hormel Foods says faced 'record-high' input costs for two primary raw materials
"We generated record pre-tax earnings this quarter even as we faced record-high input costs for two of our primary raw materials, pork bellies and beef trim," Snee said. "Nevertheless the results did not meet our expectations. Our team is working to mitigate the effects of volatile commodity markets through increased pricing, strategic promotional activity, and our on-going innovation efforts. Strong earnings growth in Grocery Products and Refrigerated Foods was able to offset lower earnings in our other three segments. Specialty Foods results are disappointing, primarily caused by a soft quarter for MUSCLE MILK ready-to-drink protein products. As we anticipated, Jennie-O Turkey Store continues to navigate through unfavorable market conditions in the turkey industry."