Shares of Hormel Foods Corp (NYSE:HRL) ended Friday session in red amid volatile trading. The shares closed down -0.31 points or -0.85% at $36.37 with 2.56 million shares getting traded. Post opening the session at $36.68, the shares hit an intraday low of $36.13 and an intraday high of $36.73 and the price vacillated in this range throughout the day. The company has a market cap of $19.27 billion and the numbers of outstanding shares have been calculated to be 529.20 million shares.
Hormel Foods Corp (HRL) on September 7, 2016 announced that Jeffrey M. Ettinger will retire as chief executive officer on October 30, 2016. Ettinger will continue to serve as Hormel Foods chairman of the board. The Board of Directors elected James P. Snee to be the company’s next chief executive officer, effective October 31, 2016. Snee currently serves as president and chief operating officer.
Ettinger served as chairman of the board, president and chief executive officer from November 2006 to October 2015, when Snee was appointed president and Ettinger became chairman of the board and CEO. Ettinger joined Hormel Foods in 1989 and has served in a variety of roles, including senior attorney, product manager for Hormel® chili products and treasurer. In 1999, he was named president of Jennie-O Turkey Store — the largest subsidiary of Hormel Foods, based in Willmar, Minn. Ettinger was appointed president of Hormel Foods in 2004 and CEO effective January 1, 2006. He has served on the Hormel Foods Board of Directors since 2004, and currently serves on the boards of The Toro Company, Ecolab, Inc., North American Meat Institute, Grocery Manufacturers Association, The Hormel Foundation, The Hormel Institute and the Minnesota Business Partnership.
Under Ettinger’s leadership, Hormel Foods has grown through strategic acquisitions, organic growth and a continued focus on new product innovation. In 2016, Ettinger was named as one of the 30 World’s Best CEOs by Barron’s. In 2012, he was named Responsible CEO of the Year by Corporate Responsibility magazine. In addition, Ettinger is the founding chair of the company’s diversity and inclusion council, which aims to meet the growing needs of its diverse workforce and consumer base.
“Jeff has expertly piloted the company to significant growth and success during his tenure, leading a talented management team in the delivery of strong and consistent returns to Hormel Foods shareholders,” said John L. Morrison, the board’s Lead Director. “Under his leadership, the company added to an outstanding portfolio of brands through numerous strategic acquisitions, most notably Wholly Guacamole®, Skippy®, Muscle Milk® and most recently, the Applegate® and Justin’s® brands. While Jeff will certainly be missed, I am equally as confident in the leadership of Jim Snee as he assumes the role of CEO. Jim is a 27-year veteran of the company and served as president and chief operating officer for the last year. His excellent performance in this role, along with his successful experience in running the company’s International division and prior significant leadership roles in the affiliated foods and foodservice units within Refrigerated Foods, positions the company to continue to deliver outstanding results to its shareholders. The company is in excellent hands.”
Ettinger noted, “It has been an honor to lead this great company alongside our dedicated employees around the world. Hormel Foods has a 125-year legacy of delivering quality and innovation, as well as meaningful value to all of our stakeholders. As Jim takes the helm, I am confident that Hormel Foods will continue its growth trajectory as he and the team build on our strong foundation of success.”
“It is truly an honor to be elected as the next CEO for Hormel Foods,” said Snee. “This is a remarkable company made up of thousands of inspired employees dedicated to providing inspired foods to our customers around the world. Jeff has guided us with his strategic leadership, brave innovation, unquestionable integrity, and unwavering commitment to our communities and corporate citizenship. It has been a pleasure to work directly with Jeff over the past year, and I look forward to leading the company with this legacy of excellence. I am certain we are well positioned for future success in the years to come.”
Shares of Tempur Sealy International Inc (NYSE:TPX) ended Friday session in red amid volatile trading. The shares closed down -0.93 points or -1.22% at $75.00 with 2.38 million shares getting traded. Post opening the session at $75.63, the shares hit an intraday low of $74.93 and an intraday high of $76.23 and the price vacillated in this range throughout the day. The company has a market cap of $4.24 billion and the numbers of outstanding shares have been calculated to be 58.41 million shares.
Tempur Sealy International Inc (TPX) on July 28, 2016 announced financial results for the second quarter ended June 30, 2016.
SECOND QUARTER 2016 FINANCIAL SUMMARY
- Total net sales increased 5.2% to $804.4 million from $764.4 million in the second quarter of 2015. On a constant currency basis, total net sales increased 6.6%, with an increase of 6.4% in the North America business segment and an increase of 7.6% in the International business segment.
- Gross margin under U.S. generally accepted accounting principles (“GAAP”) was 41.9% as compared to 38.9% in the second quarter of 2015.
- GAAP operating income increased 92.7% to $100.2 million as compared to $52.0 million in the second quarter of 2015. Operating income in the second quarter of 2016 included $1.0 million of integration costs. Operating income in the second quarter of 2015 included $6.7 million of integration costs and $11.7 million of additional costs related to the Company’s 2015 Annual Meeting and related executive management transition and retention compensation. Adjusted operating income(1) increased 43.8% to $101.2 million, or 12.6% of net sales, as compared to $70.4 million, or 9.2% of net sales, in the second quarter of 2015.
- GAAP net income increased 0.5% to $21.3 million as compared to $21.2 million in the second quarter of 2015. The Company incurred a $47.2 million loss on extinguishment of debt associated with the completion of a new credit facility and new senior notes offering in the second quarter of 2016 and related repayment of existing debt. Adjusted net income increased 67.3% to $55.7 million as compared to $33.3 million in the second quarter of 2015
- Earnings before interest, tax, depreciation and amortization (“EBITDA”) increased 61.7% to $123.7 million as compared to $76.5 million for the second quarter of 2015. Adjusted EBITDA increased 38.1% to $124.7 million as compared to $90.3 million in the second quarter of 2015.
- GAAP earnings per diluted share (“EPS”) was $0.35 as compared to $0.34 in the second quarter of 2015. Adjusted EPS increased 73.6% to $0.92 as compared to adjusted EPS(1) of $0.53 in the second quarter of 2015.
- The Company ended the second quarter of 2016 with consolidated funded debt less qualified cash of $1.6 billion. Leverage based on the ratio of consolidated funded debt less qualified cash to Adjusted EBITDA was 3.18 times for the trailing twelve months ended June 30, 2016 as compared to 3.77 times for the trailing twelve months ended June 30, 2015.
- During the second quarter of 2016, the Company repurchased 2.1 million shares of its common stock for a total cost of $122 million. As of June 30, 2016, the Company had $178 million available under its existing share repurchase authorization.
Tempur Sealy International, Inc. Chairman and CEO Scott Thompson commented, “Thanks to the hard work of our more than 7,000 associates worldwide, the Company had an excellent quarter. We are gaining traction toward the goals we have set. Adjusted EBITDA and gross margins have increased for the third consecutive quarter, adjusted EPS is up 74%. We are improving operating leverage, continuing to invest heavily in our brands, expanding distribution, and successfully servicing our retailers and direct customers. By continuing to strengthen our iconic brands, drive higher ROIC and enhance our competitive cost position, we are positioning the Company well to deliver for our investors and other stakeholders for years to come.”