United States-Hormel Foods.

UNITED STATES-HORMEL FOODS MAKERS OF SPAM.

Hormel Foods Corporation has posted net earnings of $81.38m, or $0 .61 per basic share, for the first quarter of fiscal 2009, compared to $88.18m, or $0.65 per basic share, in the same period of fiscal 2008.

Net sales for the first quarter of fiscal 2009 increased to $1.69 billion from $1.62 billion in the comparable period of fiscal 2008. Diluted earnings per share for the first quarter were $0.60 in 2009 compared to $0.64 per share in 2008.

Segment operating profit in the first quarter was down 14% from last year and volume down 1% from 2008. A $1.7m gain in the rabbi trust investments significantly improved net interest and investment income for the quarter versus last year.

Jeffrey Ettinger, chairman of the board, president and CEO of Hormel Foods, said: "Changes in consumer behavior resulting from the recession have had a mixed effect on our sales. We have seen an upswing in sales of many of our retail products, particularly some of our traditional franchises across our different business segments, and a softening of demand for some of our newer convenience items. On balance, our overall retail sales have been relatively strong, while foodservice sales show softness."