DOWNERS GROVE, Ill. (AP) — Falling commodity costs and internal cost-cutting helped food maker Sara Lee Corp.'s first-quarter profit rise 23 percent, the company said Thursday.
The maker of Jimmy Dean sausages, Hillshire Farm deli meats and its namesake desserts and breads, Sara Lee reported it earned $284 million, or 41 cents per share, up from $230 million, or 32 cents per share, in the same quarter last year.
Revenue declined 7 percent to $2.59 billion as it sold fewer products.
"A number of factors contributed to our results, including lower input costs, ... cost savings and pricing discipline," Chief Executive Brenda C. Barnes said in a statement.
Analysts polled by Thomson Reuters, who generally exclude one-time items from their estimates, expected the company to earn 16 cents per share on $3.16 billion in revenue.
General corporate expenses were $58 million in the first quarter, down from $99 million a year ago.
Sara Lee has been shedding less profitable businesses to focus on best-selling brands during the recession to focus on its core food and beverage products.
The company also is selling its personal care products business to Unilever NV for $1.88 billion and said it has received interest in selling its household products unit.
Sara Lee raised its forecast for 2010 on the basis of solid new-product sales and the relative benefit it expects from the weakening dollar.
The company expects earnings per share between $1.12 and $1.18, or between 90 cents and 96 cents per share when adjusted. That's up from a prior outlook between $1.03 and $1.09 per share announced in August. The company predicts sales between $12.9 billion and $13.2 billion.
Analysts expect 89 cents per share in profit and revenue of $13.12 billion.
The company said it is increasing or maintaining market share in new products, such as Hillshire Farm family size lunch meat tubs. Sara Lee has been focusing more selling lower-priced items popular as consumers eat at home more often during the recession.
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