Hershey Reduces Earning Expectations for 2006

The Hershey Food Company revealed that it has lowered its earnings expectations for 2006, due to a slower than anticipated improvement in US marketplace trends and the financial impact related to a product recall and temporary plant closure in Canada.

The North American confectionary giant stated that its anticipated net sales growth for 2006 will fall slightly below the long-term 3-4% range and the increase in diluted earnings per share from operations to be in the mid-single digits.

Richard Lenny, chairman, president and CEO said: “For 2007 we anticipate net sales growth to be in this 3-4% range. Given the increased investment behind Hershey’s core brands and strategic growth initiatives, we anticipate the increase in diluted earnings per share from operations in 2007 to be in the 7-9% range.”

In November, one of its Canadian plants was closed for a month after salmonella bacteria were found during a routine inspection.