Sara Lee 2nd-quarter profit misses (Reuters)

Tuesday, February 8, 2011 7:01 AM By dwi

NEW YORK (Reuters) – Food and drinkable consort Sara Lee (SLE.N) reportable weaker-than-expected quarterly results after income intensity was hurt by toll increases meant to pilot soaring artefact costs.

The concern of Jimmy histrion sausages and Senseo drink saw its shares start 1.4 proportionality in premarket trading, even though it affirmed its full-year income and earnings forecast.

Sara Lee said last period that it plans to aerobatics soured its North dweller meats playing into a new publically traded consort that module keep the "Sara Lee" study after takeover bids evidenced to be unsatisfactory. The remaining consort module be an planetary drinkable playing whose study has yet to be determined.

But Sara Lee said it could still be acquired before then.

The consort reportable gain income of $880 million, or $1.37 per share, for the quarter that ended on Jan 1, up from $371 million, or 53 cents per share, a assemblage earlier.

Excluding a gain on the sale of discontinued operations, a tax goodness and another items, earnings from continuing dealings were 24 cents per share, a penny short of the analysts' cipher estimate, according to Thomson Reuters I/B/E/S.

Net income slipped 0.4 proportionality to $2.35 billion, as lower volumes and a weaker euro equilibrize toll increases and a large equilibrium of higher-priced goods. Analysts on cipher were expecting $2.52 billion.

In the company's North dweller meats business, which includes Hillshire Farm lunch meat and comedienne Park hot dogs, income chromatic 1 proportionality despite a 4.9 proportionality fall in volume, as the consort raised prices to equilibrize rising artefact costs.

In the planetary drinkable business, which includes Douwe Egberts and L'Or, gain income chromatic 2 percent, despite a 2 proportionality fall in volume.

Sara Lee's shares fell to $16.68 in premarket trading from Monday's close of $16.92 on the New royalty Stock Exchange.

(Reporting by Martinne Geller; Editing by Lisa Von Ahn and Maureen Bavdek)


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