PORTLAND, Ore. — J.M. Smucker Co., the maker of Folger's coffee, Jif peanut butter and its namesake jams, reported Thursday its fourth-quarter profit fell on acquisition costs and other one-time charges.
The company, based in Orville, Ohio, said its net income fell 21 percent to $94.9 million, or 82 cents per share, for the quarter. That's down from $120.6 million, or $1.01 per share, a year ago.
After adjusting for its acquisition of Rowland Coffee Roasters and some restructuring costs, the company earned $1 per share for the quarter. That beat the 99 cents per share that analysts surveyed by FactSet expected.
The company acquired privately held Rowland Coffee Roasters for $360 million in May.
Sign Up and Save
Get six months of free digital access to the Lexington Herald-Leader
Smucker's revenue rose 11 percent to $1.19 billion, primarily because of price increases. Analysts expected revenue of $1.16 billion.
The food and beverage maker, like all of its peers, has been struggling with higher commodity costs for key items like soybean oil and coffee beans. Smucker has raised prices to relieve those pressures, including increasing the price on its U.S. coffee products four times this year.
The company said those increases offset higher costs but did not improve their margins. It did see sales volume improvement during the period in brands such as Pillsbury, Jif, which is made in Lexington, and Folgers.
Company leaders say they were encouraged that sales volume for the total coffee business was down only slightly for the year, proving that consumers will continue to buy coffee at the higher prices.
Smucker executives said they expect higher costs in the coming year for nearly all key commodities, with the biggest increases in coffee, soybean oil, flour and peanuts. They anticipate costs will rise 25 percent because of these changes, excluding Rowland Coffee.
The company said it will rely on the price increases and cost-cutting already put in place for the rest of the year. The company said its margins will likely decline.
Smucker said it expects to earn $5 to $5.15 per share in fiscal 2012, excluding one-time costs that are expected to total 55 to 60 cents per share. Its forecast implies revenue of $5.79 billion.
Analysts expected profit of $5.11 per share and revenue of $5.18 billion.