Wednesday, October 09, 2002 12:44:07 PM
SLE - expects EPS to be 30% higher
CHICAGO, Oct 8, 2002 (BUSINESS WIRE) -- Sara Lee Corporation (SLE, Trade) announced today that it expects its first quarter earnings per share (EPS) to be more than 30% higher than last year's first quarter EPS of $0.26 per diluted share. The higher projections are a result of benefits from the company's Reshaping program, including increased sales of higher margin products and reduced operating costs. Favorable foreign currency exchange rates, lower interest expense and fewer shares outstanding also contributed to the above-expectation results. Sara Lee's management currently expects diluted EPS for the first quarter of fiscal 2003 to be at least $.35. For the first quarter, the analysts' consensus estimate, as measured by First Call, is currently $.28 per diluted share.
For fiscal 2003, Sara Lee currently projects that its diluted EPS will be in a range of $1.54 to $1.60 compared to $1.36 in fiscal 2002, a gain of 13% to 18%. The analysts' current consensus estimate, as measured by First Call, is $1.47 for fiscal 2003.
In its fiscal 2002 year-end earnings press release issued August 1, 2002, Sara Lee's outlook for the first quarter of fiscal 2003 was an EPS range of $.27 to $.29 per diluted share. For the full year, the company at that time projected a range of $1.44 to $1.50 per diluted share.
Reported sales are expected to increase 7%. Excluding acquisitions and divestitures, dollar sales are expected to be flat in the quarter as strength in Meats, Household Products, Intimate Apparel and Socks was offset by lower revenues from Beverage, Bakery, Hosiery and Direct Selling operations.
Preparing to address analysts at 8:30 a.m. (EDT) tomorrow (Wednesday), C. Steven McMillan, chairman, president and CEO of Sara Lee Corporation, stated, "We began 2003 with a pipeline full of innovative products, a strengthened investment program and a healthy balance sheet supported by superb cash flow. The strategy we began two years ago to invest in our key brands and take costs out of our manufacturing, distribution and administrative operations is working as demonstrated by our above-expectation first quarter results."
"As a result of our Reshaping program, for the first time in several years we are seeing growth in operating income. In this first quarter, we project that operating income will grow more than 20% over the year ago period, and for the full fiscal year we anticipate that it will grow more than 15% with increased operating income from all lines of business."
Separately, the company reported that it had repurchased 6.7 million shares of common stock at an average cost of $18.38 during this quarter. At the end of the quarter, approximately 12 million shares remained available for future repurchases under the company's current board authorization.
"Although we will continue to repurchase shares from time to time on the open market to take advantage of inefficient market moves relative to our stock, I reiterate that our first priority for the use Sara Lee's significant cash flow is to pay down debt," McMillan added.
McMillan's remarks at tomorrow's meeting will be broadcast live via the Internet and can be accessed at www.saralee.com. For people who are unable to listen to the live webcast, it will be archived in the Investor Relations section of the Sara Lee corporate Web site for 10 business days. Sara Lee's 2002 annual report is now posted on this same Web site in Flash and PDF versions.
Sara Lee will announce its earnings for the first quarter of fiscal 2003 on October 24, 2002.
Forward-looking Statements
This news release contains certain forward-looking statements concerning Sara Lee's expected first quarter and fiscal year 2003 financial results. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements.
Factors that could cause Sara Lee's actual results to differ materially from such forward-looking statements include the following: (i) impacts on reported earnings from fluctuations in foreign currency exchange rates - particularly the euro - given Sara Lee's significant concentration of business in Western Europe; (ii) significant competitive activity, including advertising, promotional and price competition, and changes in consumer demand for Sara Lee's products; (iii) adverse economic trends, including reduced consumer spending, relating in part to substantial declines in the U.S. equities markets; (iv) Sara Lee's ability to continue to source production and conduct manufacturing and selling operations in various countries in the world due to changing political environments and the impacts on the related business environment; (v) Sara Lee's ability to successfully integrate acquisitions, particularly Earthgrains, into its existing operations, and the availability of new acquisitions, joint ventures and alliance opportunities that build stockholder value; (vi) Sara Lee's ability to realize the estimated savings and productivity improvements associated with the business Reshaping initiative; (vii) fluctuations in the cost and availability of various raw materials; (viii) the impact of various food safety issues in parts of Europe on the consumption of meat products in general and the cost of raw materials used in the production of finished goods; (ix) credit and other business risks associated with customers operating in a highly competitive retail environment; and (x) inherent risks in the marketplace associated with new product introductions, including uncertainties about trade and consumer acceptance.
In addition, the company's results may also be affected by general factors, such as economic conditions, political developments, interest and inflation rates, accounting standards, taxes, and laws and regulations in markets where the corporation competes. Consequently, the company wishes to caution readers not to place undue reliance on any forward-looking statements. We have provided additional information in our Form 10-K for fiscal year 2001 and in our quarterly reports on Form 10-Q, which readers are encouraged to review, concerning factors that could cause actual results to differ materially from those in the forward-looking statements. Sara Lee undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Company Description
Sara Lee Corporation (www.saralee.com) is one of the world's leading branded consumer packaged goods companies, selling its products in nearly 200 countries. The company has three global businesses - Food and Beverage, Intimates and Underwear, and Household Products - through which it manufactures and markets products of exceptional quality and value under leading, well-known brand names such as Sara Lee, Earth Grains, Jimmy Dean, Douwe Egberts, Chock full o'Nuts, Hanes, Playtex, Bali, Dim, Kiwi, Ambi-Pur and Sanex.
Sara Lee Corporation
Julie Ketay (Media), 312/558-8727
Janet Bergman (Analysts), 312/558-8651
Aaron Hoffman (Analysts), 312/558-8739
http://www.businesswire.com
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http://clearstation.etrade.com/cgi-bin/bbs?post_id=3702420
Sara
Go Giants! Go 49ers!
CHICAGO, Oct 8, 2002 (BUSINESS WIRE) -- Sara Lee Corporation (SLE, Trade) announced today that it expects its first quarter earnings per share (EPS) to be more than 30% higher than last year's first quarter EPS of $0.26 per diluted share. The higher projections are a result of benefits from the company's Reshaping program, including increased sales of higher margin products and reduced operating costs. Favorable foreign currency exchange rates, lower interest expense and fewer shares outstanding also contributed to the above-expectation results. Sara Lee's management currently expects diluted EPS for the first quarter of fiscal 2003 to be at least $.35. For the first quarter, the analysts' consensus estimate, as measured by First Call, is currently $.28 per diluted share.
For fiscal 2003, Sara Lee currently projects that its diluted EPS will be in a range of $1.54 to $1.60 compared to $1.36 in fiscal 2002, a gain of 13% to 18%. The analysts' current consensus estimate, as measured by First Call, is $1.47 for fiscal 2003.
In its fiscal 2002 year-end earnings press release issued August 1, 2002, Sara Lee's outlook for the first quarter of fiscal 2003 was an EPS range of $.27 to $.29 per diluted share. For the full year, the company at that time projected a range of $1.44 to $1.50 per diluted share.
Reported sales are expected to increase 7%. Excluding acquisitions and divestitures, dollar sales are expected to be flat in the quarter as strength in Meats, Household Products, Intimate Apparel and Socks was offset by lower revenues from Beverage, Bakery, Hosiery and Direct Selling operations.
Preparing to address analysts at 8:30 a.m. (EDT) tomorrow (Wednesday), C. Steven McMillan, chairman, president and CEO of Sara Lee Corporation, stated, "We began 2003 with a pipeline full of innovative products, a strengthened investment program and a healthy balance sheet supported by superb cash flow. The strategy we began two years ago to invest in our key brands and take costs out of our manufacturing, distribution and administrative operations is working as demonstrated by our above-expectation first quarter results."
"As a result of our Reshaping program, for the first time in several years we are seeing growth in operating income. In this first quarter, we project that operating income will grow more than 20% over the year ago period, and for the full fiscal year we anticipate that it will grow more than 15% with increased operating income from all lines of business."
Separately, the company reported that it had repurchased 6.7 million shares of common stock at an average cost of $18.38 during this quarter. At the end of the quarter, approximately 12 million shares remained available for future repurchases under the company's current board authorization.
"Although we will continue to repurchase shares from time to time on the open market to take advantage of inefficient market moves relative to our stock, I reiterate that our first priority for the use Sara Lee's significant cash flow is to pay down debt," McMillan added.
McMillan's remarks at tomorrow's meeting will be broadcast live via the Internet and can be accessed at www.saralee.com. For people who are unable to listen to the live webcast, it will be archived in the Investor Relations section of the Sara Lee corporate Web site for 10 business days. Sara Lee's 2002 annual report is now posted on this same Web site in Flash and PDF versions.
Sara Lee will announce its earnings for the first quarter of fiscal 2003 on October 24, 2002.
Forward-looking Statements
This news release contains certain forward-looking statements concerning Sara Lee's expected first quarter and fiscal year 2003 financial results. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements.
Factors that could cause Sara Lee's actual results to differ materially from such forward-looking statements include the following: (i) impacts on reported earnings from fluctuations in foreign currency exchange rates - particularly the euro - given Sara Lee's significant concentration of business in Western Europe; (ii) significant competitive activity, including advertising, promotional and price competition, and changes in consumer demand for Sara Lee's products; (iii) adverse economic trends, including reduced consumer spending, relating in part to substantial declines in the U.S. equities markets; (iv) Sara Lee's ability to continue to source production and conduct manufacturing and selling operations in various countries in the world due to changing political environments and the impacts on the related business environment; (v) Sara Lee's ability to successfully integrate acquisitions, particularly Earthgrains, into its existing operations, and the availability of new acquisitions, joint ventures and alliance opportunities that build stockholder value; (vi) Sara Lee's ability to realize the estimated savings and productivity improvements associated with the business Reshaping initiative; (vii) fluctuations in the cost and availability of various raw materials; (viii) the impact of various food safety issues in parts of Europe on the consumption of meat products in general and the cost of raw materials used in the production of finished goods; (ix) credit and other business risks associated with customers operating in a highly competitive retail environment; and (x) inherent risks in the marketplace associated with new product introductions, including uncertainties about trade and consumer acceptance.
In addition, the company's results may also be affected by general factors, such as economic conditions, political developments, interest and inflation rates, accounting standards, taxes, and laws and regulations in markets where the corporation competes. Consequently, the company wishes to caution readers not to place undue reliance on any forward-looking statements. We have provided additional information in our Form 10-K for fiscal year 2001 and in our quarterly reports on Form 10-Q, which readers are encouraged to review, concerning factors that could cause actual results to differ materially from those in the forward-looking statements. Sara Lee undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Company Description
Sara Lee Corporation (www.saralee.com) is one of the world's leading branded consumer packaged goods companies, selling its products in nearly 200 countries. The company has three global businesses - Food and Beverage, Intimates and Underwear, and Household Products - through which it manufactures and markets products of exceptional quality and value under leading, well-known brand names such as Sara Lee, Earth Grains, Jimmy Dean, Douwe Egberts, Chock full o'Nuts, Hanes, Playtex, Bali, Dim, Kiwi, Ambi-Pur and Sanex.
Sara Lee Corporation
Julie Ketay (Media), 312/558-8727
Janet Bergman (Analysts), 312/558-8651
Aaron Hoffman (Analysts), 312/558-8739
http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
http://clearstation.etrade.com/cgi-bin/bbs?post_id=3702420
Sara
Go Giants! Go 49ers!
Sara
"I never give them hell. I just tell the truth and they think it's hell." - Harry Truman
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