Smucker profit rises on sales increase
CHICAGO (Reuters) - Peanut butter and jelly maker J.M. Smucker Co <SJM.N> posted higher quarterly profit on Friday as price increases and an acquisition helped offset soaring commodity costs.
The maker of Jif peanut butter, Crisco oil and Smucker's jelly said profit was $50.2 million, or 87 cents a share, in the second quarter ended October 31, compared with $45.6 million, or 80 cents a share, a year earlier.
Excluding restructuring costs, earnings were 91 cents a share, the company said.
Analysts on average forecast 91 cents a share.
Sales rose 17 percent to $707.9 million, helped by the acquisition of the recently acquired Eagle condensed milk business. Analysts on average forecast $667.6 million, according to Reuters Estimates.
Like most food companies, Smucker is being hit by soaring ingredient costs. The company has raised prices to try to counter the increased costs and said on Friday it expects to raise prices more.
Smucker shares closed Thursday at $52.19 on the New York Stock Exchange. The stock is up 7.7 percent this year, compared with a slight decline in the Standard & Poor's packaged foods index.
(Reporting by Brad Dorfman; Editing by Mark Porter/John Wallace)