AUSTIN (AP) -- Hormel earnings dropped 5 percent in the first quarter, when compared with the first quarter of the previous year when people were stockpiling Spam and other canned goods in case of Y2K problems.
For the quarter ended Jan. 27, Hormel earned $41.5 million, or 30 cents a share, down from $43.8 million, or 30 cents a share, a year earlier.
However, dollar sales rose 5 percent to $947.5 million, from $903.9 million.
"We anticipated that the just-concluded first quarter would be a challenging one in view of the heavy Y2K inventory loading that occurred during our first quarter one year ago," said Joel Johnson, chairman, president and chief executive.
"This unusual circumstance contributed to a 10.7 percent first quarter volume increase for our canned foods business, making it difficult for us to match these results in this year's first quarter," Johnson said.
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