Hershey announces first quarter results

The Hershey Foods Corp. reported first-quarter 2007 earnings that met analysts expectations. Hershey, which announced last month it will cut thousands of jobs, including up to 900 at its plants in Derry Twp., reported earnings of 51 cents per share, or 40 cents after charges for the restructuring. In the first quarter of 2006, Hershey had posted earnings of 50 cents per share. Net sales in the first quarter totaled USD 1.153 bn, up from USD 1.139 bn for the first quarter of 2006. "Results for the first quarter were essentially in line with our expectations," Richard H. Lenny, Hershey s chairman, president and CEO said.


During the conference call, Lenny was pressed yet again about speculation that the company would be a good candidate to buy the confectionery brands of Cadbury Schweppes plc, but he again deflected all the questions about Cadbury and left the issue in the air. But again, analysts and columnist discussed the persepctives behind the possible mergerof. “Any attempt by Hershey to purchase Cadbury s chocolate and chewing-gum brands, with an estimated value of about USD 19 bn, would put a squeeze on Hershey s earnings. But it may be an opportunity Hershey can t afford to miss," columist Julie Jargon writes in the newspaper "Wall Street Journal". Hershey could build a global confectionery powerhouse.