Flowers Foods raises outlook for 2008

THOMASVILLE, Ga. - Bakery goods company Flowers Foods Inc. on Thursday raised its guidance for the 2008 fiscal year after announcing strong third-quarter results.

After taking the company's performance and the impact of two recent acquisitions into consideration, Flower Foods said it now 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 billion to $2.43 billion range.

The company also issued preliminary guidance for 2009, saying it expects sales growth of 12.2 to 14 percent in the year ahead, which would boost sales to $2.72 billion to $2.77 billion range.

Flower Foods said it expects net income of $1.33 to $1.45 per share for 2009.

"As 2009 brings continued volatility in commodities and economic uncertainty that could influence consumer buying trends, our plan is to continue working to be the most efficient and cost effective operator in our industry and to offer products and service that meet the needs of our customers and consumers," George Deese, chief executive officer and president of the company said in a statement.

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.

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 This material may not be published, broadcast, rewritten or redistributed.