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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Sara Lee Corp | LSE:SRL | London | Ordinary Share | COM STK US$1.33 1/3 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 13.82 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS No 4472r
SARA LEE CORPORATION
7th August 1997
SARA LEE CORPORATION REPORTS RECORD SALES
AND PROFITS FOR FOURTH QUARTER AND FISCAL 1997
EARNINGS PER SHARE UP 9.6% FOR THE QUARTER
UP 10.9% FOR THE YEAR
CHICARGO (August 7, 1997) - Sara Lee Corporation today announced record results
for the fourth quarter and fiscal year anded June 28, 1997.
Net sales for fiscal 1997 were $19.7 billion, up 6.0% from last year.
Net income rose 10.1% to $1.0 billion form $916 million reported last year.
Primary earnings per share rose 10.9% to $2.03, versus $1.83 in fiscal 1996.
Net sales for fiscal 1997's fourth quarter were $4.9 billion, up 6.5% over last
year. Net income rose 7.8% to $280 million. Primary earnings per share for the
fourth quarter were $0.57, up 9.6% from $0.52 one year ago.
"We are pleased to report increased operating profits for each of our four lines
of business for fiscal 1997," said John H. Bryan, chairman and chief executive
officer of Sara Lee Corporation. "In addition, cash flow from operations reached
record levels, allowing us to find acquisitions, invest for the future growth
and repurchase approximately $400 million of Sara Lee common stock. Lastly, our
key return measures -- Return on Equity and Return on Invested Capital -- showed
increases over last year's results."
A performance review for each line of business follows (dollars in millions)
PACKAGED MEATS AND BAKERY
Fourth Quarter Change Fiscal Year Change
1997 1996 1997 1996
Sales $ 1,902 $ 1,649 15.4% $ 7,614 $ 8,530 16.6%
Operating Income $ 134 $ 121 10.5% $ 476 $ 422 12.8%
Packaged Meats and Bakery sales and operating profits rose significantly during
the quarter, up 15.4% and 10.5%, respectively, aided by base business growth and
contributions from the French processed meats company Aoste, acquired in early
fiscal 1997. Fiscal 1997 sales for this line of business grew 16.6% and
operating income increased 12.8%. Profit growth was particualrly strong in
Packaged Meats and Foodservice during both periods, with double-digit gains
reported, excluding benefits from acquisitions. Bakery sales and profits
declined in both the fourth quarter and fiscal year, primarily reflecting a weak
retail market for frozen baked goods in the United States.
Unit volumes for worldwide Packaged Meats were up 1% for the fourth quarter and
flat for the fiscal year, reflecting higher commodity costs, which affected
retail prices for most products. Unit sales increased during both periods for
hot dogs sold under the Bryan and Ball Park brands, and for the Jimmy Dean line
of breakfast sausage products.
Worldwide unit volumes for Sara Lee Bakery were down 4% for the fourth quarter
and fell 5% for the full year as international volume gains were offset by a
soft U.S. retail environment for frozen baked goods. Foodservice units at
PYA/Monarch rose 6% during the quarter and 4% for the full year. All unit volume
comparisons exclude acquisitions.
COFFEE AND GROCERY
Fourth Quarter Change Fiscal Year Change
1997 1996 1997 1996
Sales $ 724 $ 695 4.1% $ 2,813 $ 2,896 (2.9)%
Operating Income $ 100 $ 98 2.5% $ 440 $ 428 2.9%
Coffee and Grocery reported a 4.1% increase in sales and a 2.5% increase in
profits for the fourth quarter. For the fiscal year, sales fell 2.9%, while
operating profits increased 2.9%. These results reflected the negetive impact of
a stronger dollar relative to European currencies. In local currency terms,
sales increased during both periods and profits grew by more than 10%.
Unit volumes for roasted coffee, led by this division's flagship Douwe Egberts
brand, fell 2% in the quarter, but rose 3% for the full year, at the upper end
of the market's historical growth trend. Unit volumes exclude acquisitions.
HOUSEHOLD AND BODY CARE
Fourth Quarter Change Fiscal Year Change
1997 1996 1997 1996
Sales $ 524 $ 514 2.0% $ 1,843 $ 1,837 0.3%
Operating Income $ 85 $ 80 6.3% $ 228 $ 214 6.4%
Household and Body Care reported a 2.0% increase in sales for the fourth
quarter, while operating income grew 6.3%. For fiscal 1997, sales rose 0.3% from
the previous year, and operating income rose 6.4%. Results benefited from
increased profitability within several Household and Body Care categories,
including Kiwi shoe care and Sanex body care, as well as from higher sales in
the Direct Selling division. Reported sales and profits for this line of
business were negetively affected by the stronger value of the dollar against
foreign currencies. In local currency terms, sales grew by more than 5% during
the quarter and the fiscal year, and profits increased at a double-digit rate.
PERSONAL PRODUCTS
Fourth Quarter Change Fiscal Year Change
1997 1996 1997 1996
Sales $ 1,785 $ 1,772 0.7% $ 7,482 $ 7,370 1.5%
Operating Income $ 215 $ 202 6.3% $ 761 $ 729 4.4%
Personal Products reported increased sales, profits and margins in both the
fourth quarter and the full fiscal year. Fourth quarter sales rose 0.7%, while
operating income grew 6.3%. Fiscal 1997 sales increased 1.5% and operating
income grew 4.4%. Sales and operating income gains were particularly strong in
the company's worldwide intimate Apparel division, featuring leading brands such
as Bali, Playtex and Dim.
Unit volumes for Personal Products' major product categories -- sheer hosiery,
knit products and intimate apparel -- increased 4% during the quarter and rose
3% for the fiscal year, led by particularly strong results in Knit Products and
Intimates.
In the fourth quarter, worldwide Knit Products unit sales, featuring Hanes,
Hanes Her Way and Champion products, increased 10%, led by double-digit gains in
U.S. underwear and casualwear. Intimate apparel unit sales in the quarter gained
8% on a worldwide basis, with increases in both U.S. and European markets.
Worldwide legwear units fell 7% during the quarter, reflecting a 9% decline in
sheer hosiery unit volume and a 1% increase in socks. For the full year,
worldwide Knit Products units increased 9%, global Intimate Apparel unit
sales rose 1% and worldwide legwear volumes fell 2%. Unit volumes exclude
acquisitions.
Net interest expense for the fiscal year was $159 million, compared to $173
million in fiscal 1996. Net interest expense for the fourth quarter was $33
million, compared to $41 million one year ago. The tax rate for the fiscal 1997
was 32.0%, versus 33.5% for fiscal 1996. For the fourth quarter, the tax rate
was 32.0%, versus 32.2% one year ago.
Sara Lee Corporation, a global food and consumer products company with $19.7
billion in sales, markets a wide variety of products under leading brand names,
including Sara Lee, Ball Park, Hillshire Farm, Jimmy Dean, Aoste, Douwe Egberts,
Hanes, Hanes Her Way, L'eggs, Bali, Playtex, Champion, Coach, Dim, Sanex and
Kiwi.
Consolidated Statements of Income
(in millions except per share amounts)
Fourth Quarter Ended
June 28, June 29, Percent
1997 1996 Change
Net sales $ 4,930 $ 4,627 6.5%
Cost of sales 3,049 2,795
Selling, general and
administartive expenses 1,436 1,408
Interest expense 46 53
Interest income (13) (12)
4,518 4,244
Income before income taxes 412 383 7.4
Income taxes 132 124
Net income 280 259 7.8
Preferred dividends - net of tax 6 6
Net income available for
common stockholders $ 274 $ 253
Net income per common share - primary $ 0.57 $ 0.52 9.6
Average shares outstanding 484 487
Net income per common share
- fully diluted $ 0.55 $ 0.51 7.8
Average shares outstanding 501 505
Consolidated Statements of Income
(in millions except per share amounts)
Year Ended
June 28, June 29, Percent
1997 1996 Change
Net Sales $ 19,734 $ 18,624 6.0%
Cost of sales 12,267 11,470
Selling, general and
administrative expenses 5,824 5,603
Interest expense 202 228
Interest income (43) (55)
18,250 17,246
Income before income taxes 1,484 1,378 7.7
Income taxes 475 462
Net income 1,009 916 10.1
Preferred dividends - net of tax 26 27
Net income available for
common stockholders $ 983 $ 889
Net income per common share - primary $ 2.03 $ 1.83 10.9
Average shares outstanmding 485 485
Net income per common share
- fully diluted $ 1.97 $ 1.78 10.7
Average shares outstanding 503 504
Operating Results by Industry Segment
(in millions) Fourth Quarter Ended
Sales
June 28, June 29, Percent
1997 1996 Change
Packaged Meats and Bakery $ 1,902 $ 1,649 15.4%
Coffee and Grocery 724 695 4.1
Household and Body Care 524 514 2.0
Personal Products 1,785 1,772 0.7
Total sales and operating income 4,935 4,630 6.6
Intersegment sales (5) (3) NM
Interest, net - - -
Unallocated corporate expense - - -
Net sales and pre-tax income $ 4,930 $ 4,627 6.5%
Operating Results by Industry Segment
(in millions) Fourth Quarter Ended
Operating Income
June 28, June 29, Percent
1997 1996 Change
Packaged Meats and Bakery $ 134 $ 121 10.5%
Coffee and Grocery 100 98 2.5
Household and Body Care 85 80 6.3
Personal Products 215 202 6.3
Total sales and operating income 534 501 6.6
Intersegment sales - - -
Interest, net (33) (41) 18.2
Unallocated corporate expense (89) (77) (15.8)
Net sales and pre-tax income $ 412 $ 383 7.4%
Operating Results by Industry Segment
(in millions) Year Ended
Sales
June 28, June 29, Percent
1997 1996 Change
Packaged Meats and Bakery $ 7,614 $ 6,530 16.6%
Coffee and Grocery 2,813 2,896 (2.9)
Household and Body Care 1,843 1,837 0.3
Personal Products 7,482 7,370 1.5
Total sales and operating income 19,752 18,633 6.0
Intersegment sales (18) (9) NM
Interest, net - - -
Unallocated corporate expense - - -
Net sales and pre-tax income $ 19,734 $18,624 6.0%
Operating Results by Industry Segment
(in millions) Year Ended
Operating Income
June 28, June 29, Percent
1997 1996 Change
Packaged Meats and Bakery $ 476 $ 422 12.8%
Coffee and Grocery 440 428 2.9
Household and Body Care 228 214 6.4
Personal Products 761 729 4.4
Total sales and operating income 1,905 1,793 6.2
Intersegment sales - - -
Interest, net (159) (173) 8.1
Unallocated corporate expense (262) (242) (8.3)
Net sales and pre-tax income $ 1,484 $ 1,378 7.7%
END
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