Still, the largest U.S. chewing gum maker posted stronger sales overseas and raised its quarterly dividend.
CHICAGO (Reuters) - Wm Wrigley Jr Co <WWY.N> on Monday posted fourth-quarter earnings slightly below analysts' estimates as sales fell in North America.
Still, the largest U.S. chewing gum maker posted stronger sales overseas and raised its quarterly dividend.
Wrigley, whose shares fell nearly 2 percent, said profit rose to $155 million, or 56 cents a share, from $128.8 million, or 46 cents a share, a year earlier.
Excluding restructuring charges, earnings were 52 cents a share, a penny below the analysts' average forecast compiled by Reuters Estimates.
!ADVERTISEMENT!Quarterly net sales increased 16 percent to $1.42 billion from $1.22 billion.
North American sales fell 2.7 percent to $454.3 million. The company said customer inventory reductions had cut into demand, while price increases had some effect on volume.
But some analysts were surprised by the decline.
Jonathan Feeney of Wachovia Securities said he had expected a 3 percent increase in North American sales and that the decline might have been at the hands of Cadbury Schweppes Plc <CBRY.L>, maker of Trident and other chewing gum brands.
"Results were okay," Feeney said in a research note, "but Wrigley's valuation leaves little room for error -- and Cadbury is winning big in North America."
Trading at roughly 25.7 times estimated 2008 earnings, Wrigley has one of the highest multiples of U.S. packaged foods companies.
The company declared a quarterly dividend of 33.5 cents per share, up 16 percent from its prior payout of 29 cents.
Wrigley's board also authorized future stock repurchases of up to $800 million.
The company's shares were down 96 cents, or 1.7 percent, at $56.90 in afternoon New York Stock Exchange trade.
(Reporting by Brad Dorfman and Martinne Geller; Editing by Lisa Von Ahn)
