Flowers Foods 3Q profit jumps on sales

THOMASVILLE, Ga. - Baked goods company Flowers Foods Inc. reported Thursday that its third-quarter profit jumped nearly 22 percent on strong sales and raised its forecast for 2008.

The company, one of the nation's leading producers of packaged bakery foods, said net income grew to $27.4 million, or 29 cents per share, for the quarter ended Oct. 4, compared with $22.5 million, or 24 cents per share, a year ago.

Sales increased 21.2 percent to $575.9 millionfrom $475.2 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn 29 cents per share on revenue of $583.5 million.

The company said the sales increase was due to better pricing and mix of products, as well as total increased sales from both the company's branded products and those of two recent acquisitions.

Among its brands are Nature's Own, Whitewheat, Cobblestone Mill, Blue Bird, and Mrs. Freshley's.

"Sales across all categories remain strong, and we are on track to continue expanding our geographic footprint, deliver profitable growth and drive product innovation," George Deese, chief executive and president, said in a statement.

Flowers Foods said it expects to earn $1.22 to $1.26 per share for the 2008 fiscal year, up from the previously anticipated $1.17 to $1.23 per share. Sales are expected to be in the $2.42 billion to $2.43 billion range, above the previously anticipated $2.4 to $2.43 billion range.

But its shares fell 97 cents, or 3.5 percent, to $27.07 in morning trading Thursday.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.