The Hershey Company Reaffirms Financial Goals
by Business Wire
In a presentation today at the 2013 Consumer Analyst Group of Europe (CAGE) conference, John P. Bilbrey, President and Chief Executive Officer, The Hershey Company (NYSE: HSY) and Humberto P. Alfonso, Executive Vice President, CFO and Chief Administrative Officer, reviewed the progress the company has achieved in its consumer-driven global approach to core brand investment in both the U.S. and key international markets.
During the presentation, Bilbrey and Alfonso reaffirmed the company's full-year 2013 financial expectations for net sales, gross margin and earnings per share-diluted growth provided in its January 31, 2013, earning release as well as its long-term target for net sales and adjusted earnings per share-diluted. The Hershey Company CAGE presentation was accompanied by slides that can be accessed at the corporate website (http://www.thehersheycompany.com). Please go to the Investor Relations section of the website for further information.
In 2013, the company expects to record total GAAP charges of about $10 million to $15 million, or $0.03 to $0.05 per share-diluted, attributable to Project Next Century and $13.2 million, or $0.04 per share-diluted, of non-service related pension expense (NSRPE). Below is a reconciliation of earnings per share-diluted in accordance with GAAP to non-GAAP adjusted earnings per share-diluted:
$3.47 - $3.56
Total Business Realignment
and Impairment Charges
0.03 – 0.05
Non-Service Related Pension Expense
$3.56 - $3.63
Possible adjustments to exclude business realignment and impairment charges over the long term are not known at this time; therefore, the Company is unable to provide a reconciliation of earnings per share-diluted in accordance with GAAP to adjusted earnings per share-diluted.
Safe Harbor Statement
This release contains statements that are forward-looking. These statements are made based upon current expectations that are subject to risk and uncertainty. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the Company's securities. Factors that could cause results to differ materially include, but are not limited to: issues or concerns related to the quality and safety of our products, ingredients or packaging; changes in raw material and other costs; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; disruption to our supply chain; failure to successfully identify, execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws and regulations, including taxes; political, economic, and/or financial market conditions; risks and uncertainties related to our international operations and related growth targets; disruptions, failures or security breaches of our information technology infrastructure; the impact of future developments related to the investigation by government regulators of alleged pricing practices by members of the confectionery industry, including risks from current or subsequent litigation or further government action; pension cost factors, such as actuarial assumptions, market performance and employee retirement decisions and funding requirements; our ability to achieve ongoing annual savings from supply chain realignment initiatives; and such other matters as discussed in our Annual Report on Form 10-K for 2011. All information in this press release is as of March 20, 2013. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.