Hormel settled a safety citation from OSHA last fall for $3,300 and also incurred a citation but no fine for a health violation this spring at the plant in Suffolk, Va.
Bringing the Planters facility back online has taken longer than expected, Snee said, adding to the financial drain that is expected to knock out 6 cents per share of profit this year.
Meanwhile, turkey prices have bottomed out, and the company is selling “significantly” fewer Jennie-O turkeys compared to last year.
While that might mean great deals for shoppers for Thanksgiving, it leaves Hormel in a lurch.
Snee said “commodity market conditions” in general, including fresh pork prices, are denting the bottom line. Improved sales from branded and processed offerings, like ground turkey, Black Label bacon and Wholly Guacamole, couldn’t offset the commodity crunch.
“Many of our key retail brands are growing, outperforming their categories and, most importantly, resonating with our customers and consumers,” Snee said.
