By Albert Lea Tribune

More records, more earnings and a brighter outlook on the year were part of Hormel’s first quarter results for 2015.

Hormel reported Thursday morning a record $2.4 billion in sales for its fiscal first quarter, up 7 percent from the same quarter last year. It also reported net earnings of $171.7 million, up 12 percent from $153.3 million in 2014. Diluted earnings per share for the quarter were $0.64 compared to $0.57 per share last year.

What’s more, Hormel increased its earnings per share guidance in 2015 from $2.45 to $2.55 up to $2.50 to $2.60 per share.

“We’re comfortable that this new range reflects our best estimate of where the year should turn out,” Hormel CEO and President Jeffrey Ettinger said.

Jennie-O Turkey Store had another large quarter for Hormel. The food segment accounted for 18 percent of net sales, had operating profit up 56 percent and a dollar sales increase of 10 percent. Hormel representatives expect high turkey commodity prices to decrease as the year continues, but turkey sales will likely remain strong.

Refrigerated foods, which account for 48 percent of net sales, reported a 19 percent increase in operating profits and a 1 percent increase in dollar sales.

Grocery products, 17 percent of net sales, had a profit decrease of 8 percent, while sales increased by 2 percent. The company saw softer sales for Skippy and Hormel chili, while Spam products, Herdez salsas and Wholly Guacamole experienced sales growth.

Ettinger said the company still expects Skippy to be a vibrant part of its grocery sales segment despite its first poor showing since the company acquired the brand in 2013.

“We really feel that’s a short-term reaction to some of the pricing changes going on in the category,” he said.

Hormel expects the grocery products segment to increase in the later half of 2015.

Profit in Hormel’s international division, 6 percent of net sales, increased by 6 percent and sales were up 17 percent, largely due to strong growth from the company’s China foodservice and retail businesses, which offset lower Spam luncheon meat exports. Though Hormel recently sold its shares of a meat production business in Vietnam to partners, Ettinger said the company will remain strongly committed to the Asian market.

The specialty foods, 11 percent of net sales, saw mixed results, with operating profit down 13 percent, but volume increased by 17 percent and dollar sales increased by 34 percent. In part, the results come as Hormel integrates the recent Muscle Milk acquisition into its lineup.

The company expects to build on its strong first quarter, which could include a new acquisition.

Though Hormel is rumored to be in talks to acquire Applegate Farms, Hormel representatives declined to comment on any deals they are working on. However, Hormel officials did say they look for businesses that have a strong international plan, are first or second in their market, or have the potential to be innovative through Hormel’s research and development process.

Hormel also paid its 346th consecutive quarterly dividend, at the annual rate of $1 on Feb. 17.