HERSHEY, Pa. - Hershey Foods Corp. on Thursday reported first-quarter earnings of $87 million, or 63 cents a share, an increase of 10.5 percent over the same period last year. <br>
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Excluding charges for a previously announced business realignment and adjustments to its 2001 net income, the nation's largest candymaker said earnings would have totaled $92.7 million or 67 cents a share. <br>
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That was slightly better than the consensus forecast by analysts surveyed by Thomson Financial/First Call, who called for a gain of 66 cents per share. <br>
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"We're off to a good start in 2002, as our business strategy continues to yield positive results," said Richard H. Lenny, chairman, president and chief executive officer. "Our supply-chain initiatives are well on track as evidenced by the improved margins and returns. Although sales growth was modest, we achieved solid increases in our more profitable scale brands and 'instant consumables."' <br>
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Lenny said he expects the company to achieve its full-year goals of sales growth of 3 percent to 4 percent and growth in diluted earnings per share of 9 percent to 11 percent. <br>
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Consolidated net sales for the first quarter were $988.5 million, compared to $988 million for the first quarter of 2001. Sales growth was spurred by factors that included the acquisition of a Brazilian chocolate company and improved sales of core brands, offset by increasing competition and other factors. <br>
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The company's stock closed at $68.08 Wednesday on the New York Stock Exchange, down $1.82 a share or 2.6 percent. <br>
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Terry Bivens, an analyst with Bear Stearns, said the company's first quarter was "a solid quarter, in line or slightly better than what was expected." <br>
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Bivens said he expects investors to be concerned about the possibility of a strike at two of the company's Pennsylvania plants, where unions representing 3,000 employees this week rejected what the company called its final contract offer. <br>
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Also, recent price-cutting by competitors Nestle and Mars may raise concerns, Bivens said. <br>
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On the Net: <br>
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htttp://www.hersheys.com <br>
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