Sara Lee Cuts Sales Outlook on Forex
Sara Lee Corp., which has reported a $217 million loss in its fiscal first quarter, has cut its full-year sales forecast for due to unfavorable currency exchange rates.
US food giant Sara Lee Corp., which has reported a $217 million loss in its fiscal first quarter, has cut its full-year sales forecast for due to unfavorable currency exchange rates.
On Thursday, Sara Lee reported a net loss of $217 million or 37 cents per share in the first quarter of fiscal year 2012, compared to $192 million net profit or 29 cents per share recorded a year ago.
The company, on the other hand, said that its sales rose to $1.94 billion in the first three months of its fiscal year from $1.73 billion during the same period last year – but it remained short of analysts’ expectation of $1.98 billion.
The Chicago-based food giant is planning to split into two separate companies – one focused in the North America operations of its meat brands Jimmy Dean sausages and Ball Park frankfurters; while the other one focusing on Douwe Egberts and Pickwick international coffee and tea brands.
Sara Lee said it may still upwardly adjust earning from 89 cents to about 95 cents per share for the rest of the fiscal year 2012, but remained cautious in its outlook as sales remained weak due to disadvantageous foreign exchange rates.