Enter multiple symbols separated by commas

J.M. Smucker Profit Jumps 42%; Company Sees Higher Costs

Peanut butter and jelly maker J.M. Smucker said Friday quarterly profit rose a better-than-expected 42 percent, helped by the acquisition of dairy company Eagle Family Foods, lower restructuring costs and gross margin improvement.

The maker of Jif peanut butter and Smucker's jelly said net income for the fiscal first quarter ended July 31 was $40.8 million, or 71 cents per share, compared with $28.7 million, or 50 cents per share, a year earlier.

Excluding restructuring costs of 1 cent a share, it earned 72 cents a share, beating analysts' average expectation of 67 cents a share, according to Reuters Estimates.

Quarterly sales rose 7 percent to $561.5 million. The Eagle Family Foods business was responsible for half of the total increase in sales, Smucker said, also citing its Jif, Crisco, Pillsbury and Uncrustables brands for adding to sales growth.

Orrville, Ohio-based Smucker said it had faced significantly higher commodity costs -- particularly for milk, soybean oil, wheat and peanuts -- in the first quarter, and as a result, anticipates further pricing actions.

The company said it expects raw material costs to keep rising in the foreseeable future.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.