Hillshire Brands Q4 Income From Cont. Opns Declines - Quick Facts

(RTTNews) - Hillshire Brands Co. (HSH) reported that its fourth-quarter income from continuing operations dropped to $27 million from last year's $35 million, with earnings per share from continuing operations declining to $0.22 from $0.28 in the prior year quarter.

But, adjusted earnings per share from continuing operations grew to $0.33 from $0.26 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted operating income of $75 million increased 18.8%, and reported operating income increased 20.9% to $59 million primarily behind higher sales and a continued focus on expense management.

In the fourth quarter, net sales of $1.1 billion grew 10.7% versus the prior year's fourth quarter as positive price/mix in both the Retail and Foodservice/Other segments more than offset volume declines resulting largely from pricing actions. The sales growth rate also benefitted from a soft quarter in the prior year and the later timing of the Easter holiday this year. Wall Street expected revenues of $994.10 million for the quarter.

Last month, Hillshire Brands entered into a definitive agreement with Tyson Foods, Inc. (TSN) under which Tyson will acquire all outstanding shares of Hillshire Brands for $63 per share.

On August 12, 2014, each of Tyson and Hillshire Brands received a request for additional information, each often referred to as a "second request," from the Antitrust Division of the Department of Justice in connection with the proposed acquisition.

Tyson and Hillshire Brands continue to expect that the transaction, which remains subject to customary closing conditions, will be completed by September 27, 2014.

As a result of the proposed merger, Hillshire Brands said it is not providing public targets for fiscal 2015 and is not holding a conference call to discuss results.