Sara Lee Q2 net income down 44%
American consumer goods company Sara Lee reported that its net income fell 44% to $469m for the fiscal second quarter, compared to $833m in the previous year, due to discontinued operations and lump-sum charges.
The company's net sales from continuing operations for the quarter ended 31 December were up 6.3% to $2.08bn, compared to $1.96bn in the corresponding quarter last year, while adjusted sales increased 5.8% to $2.04bn, from $1.93bn last year.
Adjusted earnings from continued operations - which exclude items such as impairment charges and gains or losses on the sale of businesses - increased to 18% to $158m, compared to $134m the previous year.
In the coffee & tea segment, sales grew 11% and adjusted net sales increased 11.6% from last year, due to pricing and mix.
In the meat segment, sales increased 2.3% and adjusted sales grew 0.9%, due to pricing actions, which helped reverse volume declines in core categories.
However, volume and share increase in the company's core meat categories was diluted by weak performance in bakery categories.
Sara Lee Chief Executive Marcel Smits said the meat business showed a marked improvement in volume and mix trends in the quarter in response to course corrections.
"We made brisk improvement on the meat categories in the retail and foodservice businesses, while the bakery categories lagged," Smits added.
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