Hershey reports drop in fourth quarter results

Hershey has announced a 65% decrease in fourth-quarter profits to USD 54.3 m as rising dairy costs and restructuring charges hit the US confectionery concern. Net sales were inched up - but only marginally - reaching US$1.34bn compared to US$1.33bn a year earlier. The company pointed to US$95.9m in charges it had racked up due to changes to its global supply chain and a revamp of its business in Brazil. Dairy costs continued to weigh on Hershey during the latter part of the year and the company warned that it expects its commodity bill to lengthen at a similar rate in 2008. Full-year income plunged 62% to $214.1m, while sales were flat at $4.9bn. President and CEO Dave West said Hershey s "primary goal" this year was to "stabilise" its business in the US, the company s largest market.