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HERSHEY, Pa., Jan. 24 /PRNewswire-FirstCall/ -- Hershey Foods Corporation
(NYSE: HSY) today announced sales and earnings for the fourth quarter ended
December 31, 2001. Consolidated net sales for the fourth quarter were
$1,273,917,000 compared with $1,194,902,000 for the fourth quarter of 2000, an
increase of 6.6%. A net loss of $(44,951,000), or $(.33) per share-diluted,
for the fourth quarter of 2001 includes a one-time charge to cost of sales of
$50 million resulting from a reduction in raw material inventory levels, as
well as business realignment and asset impairment charges of $228 million.
Excluding total one-time charges of $278 million, or $1.25 per share-diluted,
net income for the fourth quarter of 2001 was $126,901,000, or $.92 per share-
diluted, compared with $115,962,000, or $.84 per share-diluted, for the fourth
quarter of 2000, an increase of 9.5%.
For the year 2001, consolidated net sales were $4,557,241,000 compared
with $4,220,976,000 for 2000, an increase of 8.0%. Net income for 2001,
including one-time charges of $278 million, or $1.25 per share-diluted, was
$207,156,000, or $1.50 per share-diluted, compared with $334,543,000, or $2.42
per share-diluted, for 2000.
Excluding one-time items such as the special charge to cost of sales, as
well as the business realignment and asset impairment charges in the fourth
quarter, the gain on the sale of the Luden's business in the third quarter of
2001, and the gain on the sale of corporate aircraft in the first quarter of
2000, net income for 2001 was $377,905,000, or $2.74 per share-diluted,
compared with $330,068,000, or $2.39 per share-diluted for 2000, an increase
of 14.6%.
"We're pleased with our strong financial performance in 2001," said
Richard H. Lenny, Chairman, President and Chief Executive Officer. "We've
made good progress executing our new strategic direction, turning in solid
operational improvements and consistent market share gains. These results
continue to build the foundation for superior performance long-term. We're
excited by the opportunities which lie ahead."
Safe Harbor Statement
This release contains statements which are forward-looking. These
statements are made based upon current expectations which are subject to risk
and uncertainty. Actual results may differ materially from those contained in
the forward-looking statements. Factors which could cause results to differ
materially include, but are not limited to: changes in the confectionery and
grocery business environment, including actions of competitors and changes in
consumer preferences; changes in governmental laws and regulations, including
taxes; market demand for new and existing products; the Company's ability to
implement improvements to and reduce costs associated with the Company's
distribution operations; pension cost factors, such as actuarial assumptions
and employee retirement decisions; the Company's ability to sell certain
assets at targeted values; and changes in raw material and other costs, as
discussed in the Company's Annual Report on Form 10-K for 2000.
Live Web Cast
As previously announced, the Company will hold a conference call with
analysts today at 11:15 a.m. Eastern Time. The conference call will be web
cast live via Hershey's corporate Web site www.hersheys.com. Please go to the
Investor Relations Section of the Web site for further details.
Hershey Foods Corporation
Summary of Consolidated Statements of Income
For the periods ended December 31, 2001 and December 31, 2000
(in thousands of dollars except per share amounts)
Fourth Quarter Twelve Months
2001 2000 2001 2000
Net Sales $1,273,917 $1,194,902 $4,557,241 $4,220,976
Costs and Expenses:
Cost of Sales 758,847 667,553 2,665,566 2,471,151
Selling, Marketing
and Administrative 346,053 318,965 1,269,964 1,127,175
Business Realignment
and Asset
Impairments 228,314 --- 228,314 ---
Gain on Sale of
Business --- --- (19,237) ---
Total Costs and
Expenses 1,333,214 986,518 4,144,607 3,598,326
(Loss) Income Before
Interest and Income
Taxes (59,297) 208,384 412,634 622,650
Interest Expense, net 16,722 19,486 69,093 76,011
(Loss) Income Before
Income Taxes (76,019) 188,898 343,541 546,639
Income Tax (Benefit)
Provision (31,068) 72,936 136,385 212,096
Net (Loss) Income ($44,951) $115,962 $207,156 $334,543
Net (Loss) Income
Per Share - Basic ($0.33) $0.85 $1.52 $2.44
- Diluted ($0.33) $0.84 $1.50 $2.42
Shares Outstanding
- Basic 135,953 136,594 136,245 137,326
- Diluted 135,953 137,987 137,696 138,365
Hershey Foods Corporation
Consolidated Balance Sheets
as of December 31, 2001 and 2000
(in thousands of dollars)
Assets 2001 2000
Cash and Cash Equivalents $134,147 $31,969
Accounts Receivable - Trade (Net) 361,726 379,680
Deferred Income Taxes 96,939 76,136
Inventories 512,134 605,173
Prepaid Expenses and Other 62,595 202,390
Total Current Assets 1,167,541 1,295,348
Net Plant and Property 1,534,901 1,585,388
Intangibles Resulting from Business
Acquisitions 429,128 474,448
Other Assets 115,860 92,580
Total Assets $3,247,430 $3,447,764
Liabilities and Stockholders' Equity
Loans Payable $7,926 $258,123
Accounts Payable 133,049 149,232
Accrued Liabilities 462,901 358,067
Taxes Payable 2,568 1,479
Total Current Liabilities 606,444 766,901
Long-Term Debt 876,972 877,654
Other Long-Term Liabilities 361,041 327,674
Deferred Income Taxes 255,769 300,499
Total Liabilities 2,100,226 2,272,728
Total Stockholders' Equity 1,147,204 1,175,036
Total Liabilities and Stockholders'
Equity $3,247,430 $3,447,764
Hershey Foods Corporation
Pro Forma Summary of Consolidated Statements of Income
Excluding One-Time Items
for the periods ended December 31, 2001 and December 31, 2000
(in thousands of dollars except per share amounts)
Fourth Quarter Twelve Months
2001 2000 2001 2000
Net Sales $1,273,917 $1,194,902 $4,557,241 $4,220,976
Costs and Expenses:
Cost of Sales 708,745(a) 667,553 2,615,464(a) 2,471,151
Selling,
Marketing and
Administrative 346,053 318,965 1,269,964 1,134,487(c)
Business
Realignment
and Asset
Impairments --- (b) --- --- (b) ---
Gain on Sale
of Business --- --- --- (d) ---
Total Costs and
Expenses 1,054,798 986,518 3,885,428 3,605,638
Income Before
Interest and
Income Taxes 219,119 208,384 671,813 615,338
Interest Expense,
net 16,722 19,486 69,093 76,011
Income Before
Income Taxes 202,397 188,898 602,720 539,327
Provision for
Income Taxes 75,496 72,936 224,815 209,259
Net Income $126,901 $115,962 $377,905 $330,068
Net Income
Per Share
- Basic $0.93 $0.85 $2.77 $2.40
- Diluted $0.92 $0.84 $2.74 $2.39
Shares Outstanding
- Basic 135,953 136,594 136,245 137,326
- Diluted 137,450 137,987 137,696 138,365
(a) Excludes charge of $50.1 million pre-tax, or $30.9 million after-tax,
resulting from a reduction in raw material inventories.
(b) Excludes business realignment and asset impairment charges of $228.3
million pre-tax, or $140.9 million after-tax.
(c) Excludes airplane swap gain of $7.3 million pre-tax, or $4.5 million
after-tax.
(d) Excludes gain on the sale of the Luden's business of $19.2 million
pre-tax, or $1.1 million after-tax.
SOURCE Hershey Foods Corporation
CONTACT: Christine M. Dugan, +1-717-534-7631, or Financial: James A.
Edris, +1-717-534-7556, both of Hershey Foods/
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