Breaking News

Dollar General Raises Offer for Family Dollar to $80 Per Share in Cash
Tweet TWEET

The J. M. Smucker Company Announces Fiscal 2013 Second Quarter Results and Updates Full Year Guidance

  The J. M. Smucker Company Announces Fiscal 2013 Second Quarter Results and
                          Updates Full Year Guidance

-- Acquisition and favorable sales mix drive an 8 percent net sales increase

-- EPS up 21 percent; EPS up 12 percent excluding special project costs

-- Strong cash generated from operations

-- Company increases EPS outlook for fiscal 2013

PR Newswire

ORRVILLE, Ohio, Nov. 16, 2012

ORRVILLE, Ohio, Nov. 16, 2012 /PRNewswire/ --The J. M. Smucker Company (NYSE:
SJM) today announced results for the second quarter ended October 31, 2012, of
its 2013 fiscal year. Results for the quarter and six months ended October
31, 2012, include the operations of the North American foodservice coffee and
hot beverage business acquired from Sara Lee Corporation ("Sara Lee
foodservice business") since the completion of the acquisition on January 3,
2012.

Executive Summary

                  Three Months Ended October 31,  Six Months Ended October 31,
                  2012       2011     % Increase  2012     2011     % Increase
                                      (Decrease)                    (Decrease)
                  (Dollars in millions, except per share data)
Net sales         $         $       8%          $       $       11%
                  1,628.7    1,513.9              2,998.4  2,702.8
Operating income  $        $      17%         $      $      12%
                  247.5     211.6               438.1   392.3
   % of net sales 15.2%      14.0%                14.6%    14.5%
Net income:
   Income         $        $      17%         $      $      9%
                  148.8     127.2               259.7   238.8
   Income per     $       $     21%         $     $     13%
   diluted share 1.36      1.12                2.36    2.09
Operating income  $        $                  $      $  
excluding special 261.5     241.6   8%          479.8   447.3   7%
project costs
   % of net sales 16.1%      16.0%                16.0%    16.5%
Net income
excluding special
project costs:
   Income         $        $      8%          $      $      4%
                  158.1     147.0               287.4   275.2
   Income per     $       $     12%         $     $     9%
   diluted share 1.45      1.29                2.62    2.41



  oThe acquired Sara Lee foodservice business contributed $90.7 million and
    $177.5 million to net sales for the three and six months ended October 31,
    2012, respectively.
  oOperating income and net income excluding the impact of restructuring,
    merger and integration, and certain pension settlement costs ("special
    project costs") each increased 8 percent in the second quarter. Included
    in these amounts for the second quarter last year was a pre-tax loss on
    divestiture of approximately $11.3 million.
  oSecond quarter net income excluding special project costs per diluted
    share increased 12 percent, which includes the benefit from the Company's
    share repurchase activities over the past year.

"We delivered another strong quarter of solid sales and earnings growth,"
commented Richard Smucker, Chief Executive Officer. "Our long-term strategy
continues to serve us well in consistently delivering results. Our iconic
brands are trusted and have demonstrated their strength and resilience. We
have a team of highly talented employees that are fully committed to our
culture and to implementing our strategy. All of which point to our Company
being well-positioned for continued profitable growth."

"Overall consumer spending appears to be on the upswing which is welcome news
for the industry," added Vince Byrd, President and Chief Operating Officer.
"The tactical adjustments we made to address market conditions are working.
We have optimized price points, closed price gaps, and strengthened
merchandising. Consumers continue to respond positively to these actions and
to our brand-building initiatives, product innovations, and new brand
additions. We are well-poised for the holiday season and another year of
growth." 

Net Sales

              Three Months Ended October 31,        Six Months Ended October 31,
              2012      2011      Increase    %     2012     2011      Increase    %
                                  (Decrease)                           (Decrease)
              (Dollars in millions)
Net sales     $        $1,513.9  $         8%    $      $        $         11%
              1,628.7            114.8            2,998.4  2,702.8  295.7
Adjust for
certain
noncomparable
items:
  Acquisition (90.7)    -         (90.7)      (6%)  (177.5)  -         (177.5)     (7%)
  Divestiture -         (3.0)     3.0         0%    -        (8.0)     8.0         0%
  Foreign     (2.1)     -         (2.1)       (0%)  3.4      -         3.4         0%
  exchange
Net sales
adjusted for
noncomparable
impact of     $        $1,510.9  $        2%    $      $        $         5%
acquisition,  1,535.9            24.9              2,824.4  2,694.8  129.6
divestiture,
and foreign
exchange
Amounts may not add due to rounding.



Net sales increased 8 percent in the second quarter of 2013, compared to the
second quarter of 2012, due to the impact of the acquired Sara Lee foodservice
business and favorable sales mix. Overall net price realization was slightly
lower as price declines on coffee offset increases taken on peanut butter over
the past year. Volume gains realized in Folgers® coffee, Robin Hood® and Five
Roses® flour in Canada, and Dunkin' Donuts® packaged coffee were offset by
decreases in Pillsbury® baking mixes, Crisco® shortening and oils, Jif® peanut
butter, and Smucker's® fruit spreads. Overall volume, based on weight and
excluding acquisition, decreased 2 percent in the second quarter of 2013,
compared to the second quarter of 2012. Favorable sales mix in the quarter
was driven by volume growth in the Company's coffee brands, including K-Cups®,
which are higher priced per pound, compared to other products within the
Company's portfolio.

Margins 

                                          Three Months Ended  Six Months Ended

                                          October 31,         October 31,
                                          2012       2011     2012      2011
                                          (% of net sales)
Gross profit                              33.3%      32.9%    33.7%     34.4%
Selling, distribution, and administrative
expenses:
Marketing                                5.1%       4.9%     5.2%      5.3%
Selling                                   3.2%       3.1%     3.3%      3.3%
Distribution                              2.5%       2.7%     2.6%      2.9%
General and administrative                5.0%       4.9%     5.2%      5.3%
Total selling, distribution, and          15.8%      15.6%    16.3%     16.8%
administrative expenses
Amortization                              1.5%       1.4%     1.6%      1.5%
Other restructuring, merger and           0.7%       1.1%     1.2%      1.2%
integration, and special projects costs
Loss on divestiture                       0.0%       0.7%     0.0%      0.4%
Other operating expense - net             0.1%       0.1%     0.0%      0.0%
Operating income                          15.2%      14.0%    14.6%     14.5%
Amounts may not add due to rounding.

Gross profit increased $43.2 million, or 9 percent, in the second quarter of
2013, compared to 2012. Excluding special project costs, gross profit
increased $33.0 million, or 6 percent, driven by the acquired Sara Lee
foodservice business and strong coffee growth. Gross margin was 33.4 percent
in the second quarter of 2013, compared to 33.8 percent in the second quarter
of 2012, excluding special project costs.

Overall commodity costs were slightly lower during the second quarter of 2013,
compared to the second quarter of 2012, as lower green coffee costs offset
higher costs for peanuts and certain other commodities. However, the benefit
to gross profit of overall lower costs was mostly offset by lower overall net
price realization. Unrealized mark-to-market adjustments on derivative
contracts did not contribute to the change in year-over-year gross profit and
were a loss of $10.3 million in the second quarter of 2013, compared to a loss
of $10.2 million in the second quarter of 2012.

Selling, distribution, and administrative expenses increased 9 percent in the
second quarter of 2013, compared to the second quarter of 2012, driven in part
by the acquired Sara Lee foodservice business, and increased as a percentage
of net sales from 15.6 percent to 15.8 percent. Marketing, selling, and
general and administrative expenses increased 11 percent, 10 percent, and 9
percent, respectively.

Higher amortization expense was recognized in the second quarter of 2013,
compared to 2012, primarily related to the intangible assets associated with
the Sara Lee foodservice business acquisition.

Operating income increased $35.9 million in the second quarter of 2013,
compared to 2012. Excluding special project costs in both periods, operating
income increased $19.9 million, or 8 percent, and increased from 16.0 percent
of net sales in 2012 to 16.1 percent in 2013. Both operating income measures
include a loss on divestiture of $11.3 million in 2012.

Interest and Income Taxes

Interest expense increased $4.8 million in the second quarter of 2013,
compared to 2012, primarily representing the cost of higher average debt
outstanding, due to the Company's October 2011 public debt issuance.

Income taxes increased $9.4 million, or 14 percent, in the second quarter of
2013, compared to 2012, reflecting an increase in income before income taxes
offset slightly by a lower effective tax rate. The effective tax rate was
33.6 percent in the second quarter of 2013, compared to 34.1 percent in 2012.


Segment Performance 

                    Three Months Ended October  Six Months Ended October 31,
                    31,
                    2012     2011   % Increase  2012      2011      % Increase
                                    (Decrease)                      (Decrease)
                    (Dollars in millions)
Net sales:
 U.S. Retail        $      $    1%          $         $         2%
 Coffee            622.5    617.5              1,143.3  1,117.6
 U.S. Retail        619.3    615.2  1%          1,147.8   1,074.7   7%
 Consumer Foods
 International,
 Foodservice, and   387.0    281.2  38%         707.4     510.5     39%
 Natural Foods
Segment profit:
 U.S. Retail        $      $    13%         $       $       2%
 Coffee            158.2    140.0              284.6     279.7
 U.S. Retail        111.1    116.0  (4%)        219.0     195.0     12%
 Consumer Foods
 International,
 Foodservice, and   58.2     39.0   49%         98.9      77.5      28%
 Natural Foods
Segment profit
margin:
 U.S. Retail        25.4%    22.7%              24.9%     25.0%
 Coffee
 U.S. Retail        17.9%    18.8%              19.1%     18.1%
 Consumer Foods
 International,
 Foodservice, and   15.0%    13.9%              14.0%     15.2%
 Natural Foods

U.S. Retail Coffee

The U.S. Retail Coffee segment net sales increased 1 percent in the second
quarter of 2013, compared to the second quarter of 2012, as increased volume
and favorable sales mix driven primarily by K-Cups® offset the impact of price
declines taken since the second quarter of 2012. Segment volume increased 6
percent in the second quarter of 2013, compared to the second quarter of 2012,
as the Folgers® brand increased 6 percent and Dunkin' Donuts® packaged coffee
increased 11 percent. Net sales of Folgers Gourmet Selections® and Millstone®
K-Cups® remained strong and increased $36.4 million, compared to the second
quarter of 2012. K-Cups® represented 6 percentage points of segment net sales
growth, while contributing only 1 percentage point growth to volume.

The U.S. Retail Coffee segment profit increased $18.3 million, or 13 percent,
in the second quarter of 2013, compared to the second quarter of 2012, as
favorable mix and volume growth exceeded a significant increase in marketing
expenses. The impact of lower green coffee costs was more than offset by
price declines but did not significantly impact segment profit. Unrealized
mark-to-market adjustments, which represented a loss of $4.5 million in the
second quarter of 2013, compared to a loss of $10.1 million in the second
quarter of 2012, contributed $5.6 million to the segment profit increase.

U.S. Retail Consumer Foods

The U.S. Retail Consumer Foods segment net sales also increased 1 percent in
the second quarter of 2013, compared to 2012, as the impact of higher net
price realization offset a 6 percent decline in segment volume and unfavorable
sales mix. Jif® brand net sales increased 20 percent in the second quarter of
2013, compared to 2012, primarily reflecting price increases taken since the
second quarter of 2012. Volume of the Jif® brand decreased 6 percent compared
to the strong quarter last year which benefited from early consumer buy-in in
advance of a 30 percent price increase in the third quarter of 2012.
Smucker's® fruit spreads net sales and volume were down 11 percent during the
same period. Net sales and volume of Smucker's® Uncrustables® frozen
sandwiches increased 13 percent and 11 percent, respectively, in the second
quarter of 2013, compared to 2012, benefiting from new distribution at certain
retailers.

Crisco® brand net sales and volume decreased 12 percent and 8 percent,
respectively, in the second quarter of 2013, compared to 2012, resulting from
declines at a key retailer. For the same period, net sales for the Pillsbury®
brand increased 2 percent, while volume decreased 5 percent mostly reflecting
the tonnage impact of the previously announced cake mix downsizing. Canned
milk net sales and volume increased 2 percent and 5 percent, respectively,
during the second quarter of 2013, compared to 2012.

The U.S. Retail Consumer Foods segment profit decreased $4.8 million, or 4
percent, in the second quarter of 2013, compared to the second quarter of
2012.Unrealized mark-to-market adjustments, which were a loss of $5.0 million
in the second quarter of 2013, compared to a loss of $0.4 million in the
second quarter of 2012, represented $4.6 million of the segment profit
decrease. Overall raw material costs recognized were higher in the quarter
most significantly for peanuts but were essentially offset by higher net price
realization, and a decrease in marketing and other support costs. A portion
of planned marketing expenditures in the second quarter of 2013 was redirected
to promotional spending, and contributed to the decrease in marketing
expense.

International, Foodservice, and Natural Foods

Net sales in the International, Foodservice, and Natural Foods segment
increased 38 percent in the second quarter of 2013, compared to 2012, driven
by the acquired Sara Lee foodservice business, which contributed $90.7
million, or 32 percentage points, of the net sales growth. Excluding the
impact of acquisition, divestiture, and foreign exchange, segment net sales
increased 6 percent over the same period last year. Volume was up 4 percent
with gains realized in the Robin Hood® and Five Roses® Canadian flour brands
as well as nonbranded beverages.

Segment profit increased $19.2 million in the second quarter of 2013, compared
to 2012, which included an $11.3 million loss on divestiture. Excluding this
loss, segment profit increased $7.9 million, or 16 percent, primarily due to
the contribution of the Sara Lee foodservice business. Unrealized
mark-to-market adjustments were a loss of $2.4 million in the second quarter
of 2013, compared to a loss of $0.1 million in the second quarter of 2012.

Other Financial Results and Measures

                  Three Months Ended October 31,  Six Months Ended October 31,
                  2012      2011     % Increase  2012    2011     % Increase
                                     (Decrease)                    (Decrease)
                  (Dollars in millions)
Net cash provided $       $                    $      $  
by operating      182.9    118.2   55%          359.6   59.9     n/m
activities
Free cash flow    $       $      161%         $      $       n/m
                  130.7    50.1                  261.2   (75.8)
EBITDA            $       $       13%          $      $       10%
                  310.5    273.8                565.2   514.0
    % of net      19.1%     18.1%                 18.8%   19.0%
    sales

Cash provided by operating activities increased $64.7 million in the second
quarter of 2013, compared to the second quarter of 2012, and resulted in an
increase in cash provided by operating activities of $299.7 million for the
first six months of 2013, primarily due to a lower amount of cash required to
fund inventory during the period, compared to 2012. Capital expenditures
decreased $37.2 million in the first six months of 2013, compared to 2012, and
combined with the increase in cash provided by operating activities resulted
in a $336.9 million increase in free cash flow over the same period.

During the second quarter of 2013, the Company repurchased 2.0 million common
shares for approximately $170.9 million under the Company's August 2012 Rule
10b5-1 trading plan, completing the purchase of shares included under the
plan. At October 31, 2012, the Company had approximately 1.9 million common
shares remaining available for repurchase under the Board of Directors'
authorization.

Outlook

For fiscal 2013, the Company expects net sales to increase approximately7
percent, compared to 2012, including an incremental eight-month contribution
from the Sara Lee foodservice business. Non-GAAP net income per diluted share
is expected to range from $5.12 to $5.22, excluding special project costs of
approximately $0.40 per diluted share. Previously, the range was $5.00 to
$5.10 per diluted share excluding special project costs.

Conference Call

The Company will conduct an earnings conference call and webcast today,
Friday, November 16, 2012, at 8:30 a.m. E.T. The webcast can be accessed from
the Company's website at www.smuckers.com. For those unable to listen to the
live webcast, the webcast replay will be available at www.smuckers.com
following the call. An audio replay will also be available following the call
until Friday, November 23, 2012, and can be accessed by dialing 888-203-1112
or 719-457-0820, with a pass code of 9289404.

Non-GAAP Measures

The Company uses non-GAAP measures including net sales adjusted for the
noncomparable impact of acquisition, divestiture, and foreign exchange rate;
gross profit, operating income, net income, and net income per diluted share,
excluding special project costs; earnings before interest, taxes,
depreciation, and amortization ("EBITDA"); and free cash flow as key measures
for purposes of evaluating performance internally. These non-GAAP measures
are not intended to replace the presentation of financial results in
accordance with U.S. generally accepted accounting principles ("GAAP").
Rather, the presentation of these non-GAAP measures supplements other metrics
used by management to internally evaluate its businesses, and facilitates the
comparison of past and present operations. These non-GAAP measures may not be
comparable to similar measures used by other companies and may exclude certain
nondiscretionary expenses and cash payments. A reconciliation of certain
non-GAAP measures to the comparable GAAP items for the current and prior year
quarter and year-to-date periods is included in the "Unaudited Non-GAAP
Measures" table.

About The J. M. Smucker Company

For more than 110 years, The J. M. Smucker Company has been committed to
offering consumers quality products that bring families together to share
memorable meals and moments. Today, Smucker is a leading marketer and
manufacturer of fruit spreads, retail packaged coffee, peanut butter,
shortening and oils, ice cream toppings, sweetened condensed milk, and health
and natural foods beverages in North America. Its family of brands includes
Smucker's®, Folgers®, Dunkin' Donuts®, Jif®, Crisco®, Pillsbury®, Eagle
Brand®, R.W. Knudsen Family®, Hungry Jack®, Café Bustelo®, Café Pilon®, White
Lily® and Martha White® in the United States, along with Robin Hood®, Five
Roses®, Carnation® and Bick's® in Canada. The Company remains rooted in the
Basic Beliefs of Quality, People, Ethics, Growth and Independence established
by its founder and namesake more than a century ago. For more information
about the Company, visit www.smuckers.com.

The J. M. Smucker Company is the owner of all trademarks referenced herein,
except for the following, which are used under license: Pillsbury® is a
trademark of The Pillsbury Company, LLC; Carnation®  is a trademark of Societe
des Produits Nestle S.A.; and Dunkin' Donuts®  is a registered trademark of DD
IP Holder, LLC.

Dunkin' Donuts® brand is licensed to The J. M. Smucker Company for packaged
coffee products sold in retail channels such as grocery stores, mass
merchandisers, club stores, and drug stores. This information does not
pertain to Dunkin' Donuts® coffee or other products for sale in Dunkin'
Donuts® restaurants. K-Cup® and K-Cups® are trademarks of Keurig,
Incorporated.

The J. M. Smucker Company Forward-Looking Statements

This press release contains forward-looking statements, such as projected
operating results, earnings, and cash flows, that are subject to known and
unknown risks and uncertainties that could cause actual results to differ
materially from any future results, performance, or achievements expressed or
implied by those forward-looking statements. Readers should understand that
the risks, uncertainties, factors, and assumptions listed and discussed in
this press release, including the following important factors and assumptions,
could affect the future results of the Company and could cause actual results
to differ materially from those expressed in the forward-looking statements:

  ovolatility of commodity markets from which raw materials, particularly
    green coffee beans, wheat, soybean oil, milk, peanuts, and sugar, are
    procured and the related impact on costs;
  orisks associated with derivative and purchasing strategies employed by the
    Company to manage commodity pricing risks, including the risk that such
    strategies could result in significant losses and adversely impact the
    Company's liquidity;
  ocrude oil price trends and their impact on transportation, energy, and
    packaging costs;
  othe ability to successfully implement and realize the full benefit of
    price changes that are intended to fully recover cost and the competitive,
    retailer, and consumer response;
  othe success and cost of introducing new products and the competitive
    response;
  othe success and cost of marketing and sales programs and strategies
    intended to promote growth in the Company's businesses;
  ogeneral competitive activity in the market, including competitors' pricing
    practices and promotional spending levels;
  othe ability of the Company to successfully integrate acquired and merged
    businesses in a timely and cost effective manner;
  othe successful completion of the Company's restructuring programs and the
    ability to realize anticipated savings and other potential benefits within
    the time frames currently contemplated;
  othe impact of food security concerns involving either the Company's or its
    competitors' products;
  othe impact of accidents and natural disasters, including crop failures and
    storm damage;
  othe concentration of certain of the Company's businesses with key
    customers and suppliers, including single-source suppliers of certain raw
    materials, such as packaging for its most popular Folgers® coffee
    products, and finished goods, such as K-Cups®, and the ability to manage
    and maintain key relationships;
  othe loss of significant customers, a substantial reduction in orders from
    these customers, or the bankruptcy of any such customer;
  ochanges in consumer coffee preferences and other factors affecting the
    coffee business, which represents a substantial portion of the Company's
    business;
  oa change in outlook or downgrade in the Company's public credit ratings by
    a rating agency;
  othe ability of the Company to obtain any required financing;
  othe timing and amount of capital expenditures, share repurchases, and
    restructuring costs;
  oimpairments in the carrying value of goodwill, other intangible assets, or
    other long-lived assets or changes in useful lives of other intangible
    assets;
  othe impact of new or changes to existing governmental laws and regulations
    and their application;
  othe impact of future legal, regulatory, or market measures regarding
    climate change;
  othe outcome of current and future tax examinations, changes in tax laws,
    and other tax matters, and their related impact on the Company's tax
    positions;
  oforeign currency and interest rate fluctuations;
  opolitical or economic disruption;
  oother factors affecting share prices and capital markets generally; and
  orisks related to other factors described under "Risk Factors" in other
    reports and statements filed by the Company with the Securities and
    Exchange Commission, including its most recent Annual Report on Form 10-K.

Readers are cautioned not to unduly rely on such forward-looking statements,
which speak only as of the date made, when evaluating the information
presented in this press release. The Company does not undertake any
obligation to update or revise these forward-looking statements to reflect new
events or circumstances.



The J. M. Smucker Company
Unaudited Condensed Consolidated Statements of Income
                 Three Months Ended October 31,        Six Months Ended October 31,
                 2012         2011         % Increase  2012         2011         % Increase
                                           (Decrease)                            (Decrease)
                 (Dollars in thousands, except per share data)
Net sales        $           $           8%          $           $           11%
                 1,628,746   1,513,905               2,998,449    2,702,788
Cost of products 1,084,377    1,002,517    8%          1,980,343    1,749,890    13%
sold
Cost of products
sold -
restructuring    2,458        12,719       (81%)       6,422        23,145       (72%)
and merger and
integration
Gross Profit     541,911      498,669      9%          1,011,684    929,753      9%
   Gross margin  33.3%        32.9%                    33.7%        34.4%
Selling,
distribution,
and              257,187      236,602      9%          489,403      453,154      8%
administrative
expenses
Amortization     24,203       20,559       18%         48,394       40,794       19%
Other
restructuring    8,230        10,356       (21%)       19,140       20,253       (5%)
costs
Other merger and
integration      3,243        6,871        (53%)       9,512        11,556       (18%)
costs
Other special    -            -            n/m      6,669        -            n/m
project costs
Loss on          -            11,287       (100%)      -            11,287       (100%)
divestiture
Other operating  1,506        1,380        9%          499          392          27%
expense - net
Operating Income 247,542      211,614      17%         438,067      392,317      12%
   Operating     15.2%        14.0%                    14.6%        14.5%
   margin
Interest income  378          324          17%         656          626          5%
Interest expense (24,266)     (19,448)     25%         (48,148)     (34,870)     38%
Other income -   564          711          (21%)       908          1,954        (54%)
net
Income Before    224,218      193,201      16%         391,483      360,027      9%
Income Taxes
Income taxes     75,371       65,954       14%         131,773      121,257      9%
Net Income       $         $         17%         $         $         9%
                 148,847      127,247                  259,710      238,770
   Net income    $       $                   $       $     
   per common     1.36       1.12      21%          2.37       2.09      13%
   share
   Net income
   per common    $       $                   $       $     
   share -        1.36       1.12      21%          2.36       2.09      13%
   assuming
   dilution
Dividends        $       $                   $       $     
declared per      0.52       0.48      8%           1.04       0.96      8%
common share
Weighted-average
shares           109,224,855  113,893,035  (4%)        109,796,564  114,085,291  (4%)
outstanding
Weighted-average
shares
outstanding –    109,251,455  113,944,705  (4%)        109,824,632  114,139,945  (4%)
assuming
dilution





The J. M. Smucker Company

Unaudited Condensed Consolidated Balance Sheets
                            October 31, 2012  April 30, 2012  October 31, 2011
                            (Dollars in thousands)
Assets
Current Assets:
 Cash and cash equivalents  $           $         $      
                            203,555           229,708         496,288
 Trade receivables          469,367           347,518         462,169
 Inventories                975,427           961,576         1,143,951
 Other current assets       87,713            104,663         91,299
     Total Current Assets   1,736,062         1,643,465       2,193,707
Property, Plant, and        1,113,446         1,096,089       948,225
Equipment - Net
Other Noncurrent Assets:
 Goodwill                  3,053,549         3,054,618       2,897,981
 Other intangible assets -  3,138,056         3,187,007       3,099,067
 net
 Other noncurrent assets    147,640           134,047         76,440
     Total Other Noncurrent 6,339,245         6,375,672       6,073,488
     Assets
                            $             $           $    
                            9,188,753         9,115,226       9,215,420
Liabilities and
Shareholders' Equity
Current Liabilities:
 Accounts payable           $           $         $      
                            290,054           274,725         260,653
 Current portion of         50,000            50,000          -
 long-term debt
 Other current liabilities  366,011           292,247         284,268
     Total Current          706,065           616,972         544,921
     Liabilities
Noncurrent Liabilities:
 Long-term debt             2,019,196         2,020,543       2,071,852
 Other noncurrent           1,310,745         1,314,325       1,235,298
 liabilities
     Total Noncurrent       3,329,941         3,334,868       3,307,150
     Liabilities
Shareholders' Equity        5,152,747         5,163,386       5,363,349
                            $             $           $    
                            9,188,753         9,115,226       9,215,420

The J. M. Smucker Company
Unaudited Condensed Consolidated Statements of Cash Flow
                                Three Months Ended    Six Months Ended October
                                October 31,           31,
                                2012       2011       2012          2011
                                (Dollars in thousands)
Operating Activities
 Net income                     $       $       $          $   
                                148,847   127,247   259,710      238,770
 Adjustments to reconcile net
 income to net cash provided by
 operating activities:
     Depreciation               35,920     28,227     71,974        55,796
     Depreciation -
     restructuring and merger   2,254      12,712     5,844         23,127
     and integration
     Amortization               24,203     20,559     48,394        40,794
     Share-based compensation   6,196      6,522      10,505        12,554
     expense
     Other noncash              (255)      860        (249)         1,769
     restructuring activities
     Loss on sale of assets -   1,684      2,001      2,698         2,726
     net
     Loss on divestiture        -          11,287     -             11,287
     Changes in assets and
     liabilities, net of effect
     from
     businesses acquired:
        Trade receivables       (78,301)   (113,874)  (122,291)     (106,362)
        Inventories             44,096     58,241     (14,594)      (272,613)
        Accounts payable and    37,731     15,753     98,851        71,133
        accrued items
        Proceeds from
        settlement of interest  -          17,718     -             17,718
        rate swaps - net
        Defined benefit pension (6,536)    (805)      (7,569)       (4,496)
        contributions
        Accrued and prepaid     (58,229)   (74,275)   (13,423)      (33,069)
        taxes
        Other - net             25,289     5,999      19,768        800
Net Cash Provided by Operating  182,899    118,172    359,618       59,934
Activities
Investing Activities
 Business acquired, net of cash -          -          -             (362,846)
 acquired
 Additions to property, plant,  (52,176)   (68,075)   (98,458)      (135,707)
 and equipment
 Proceeds from divestiture      -          9,268      -             9,268
 Sales and maturities of        -          -          -             18,600
 marketable securities
 Proceeds from disposal of      322        773        578           903
 property, plant, and equipment
 Other - net                    (11,861)   (2,232)    5,852         (2,250)
Net Cash Used for Investing     (63,715)   (60,266)   (92,028)      (472,032)
Activities
Financing Activities
 Revolving credit agreement -   -          (306,700)  -             -
 net
 Proceeds from long-term debt - -          748,560    -             748,560
 net
 Quarterly dividends paid       (57,331)   (54,666)   (110,176)     (104,825)
 Purchase of treasury shares    (171,062)  (39,207)   (175,302)     (44,592)
 Proceeds from stock option     575        276        760           518
 exercises
 Other - net                    144        (7,635)    (7,564)       (5,101)
Net Cash (Used for) Provided by (227,674)  340,628    (292,282)     594,560
Financing Activities
Effect of exchange rate changes 571        (4,721)    (1,461)       (6,019)
on cash
Net (decrease) increase in cash (107,919)  393,813    (26,153)      176,443
and cash equivalents
Cash and cash equivalents at    311,474    102,475    229,708       319,845
beginning of period
Cash and Cash Equivalents at    $       $       $          $   
End of Period                   203,555   496,288   203,555      496,288



The J. M. Smucker Company
Unaudited Non-GAAP Measures
                              Three Months Ended      Six Months Ended October
                              October 31,             31,
                              2012         2011       2012           2011
                              (Dollars in thousands, except per share data)
Gross profit excluding        $         $       $             $   
special project costs ^(1)    544,369      511,388    1,018,106     952,898
     % of net sales           33.4%        33.8%      34.0%          35.3%
Operating income excluding    $         $       $           $   
special project costs ^(2)    261,473      241,560    479,810        447,271
     % of net sales           16.1%        16.0%      16.0%          16.5%
Net income excluding special
project costs: ^(3)
     Income                   $         $       $           $   
                              158,105      146,976    287,402        275,216
     Income per common share  $       $      $        $    
     -- assuming dilution      1.45         1.29   2.62             2.41
^(1) Reconciliation to gross
     profit:
     Gross profit             $         $       $             $   
                              541,911      498,669    1,011,684     929,753
     Cost of products sold -
     restructuring and merger 2,458        12,719     6,422          23,145
     and integration
     Gross profit excluding   $         $       $             $   
     special project costs    544,369      511,388    1,018,106     952,898
^(2) Reconciliation to
     operating income:
     Operating income         $         $       $           $   
                              247,542      211,614    438,067        392,317
     Cost of products sold -
     restructuring and merger 2,458        12,719     6,422          23,145
     and integration
     Other restructuring      8,230        10,356     19,140         20,253
     costs
     Other merger and         3,243        6,871      9,512          11,556
     integration costs
     Other special project    -            -          6,669          -
     costs
     Operating income         $         $       $           $   
     excluding special        261,473      241,560    479,810        447,271
     project costs
^(3) Reconciliation to net
     income:
     Net income               $         $       $           $   
                              148,847      127,247    259,710        238,770
     Income taxes             75,371       65,954     131,773        121,257
     Cost of products sold -
     restructuring and merger 2,458        12,719     6,422          23,145
     and integration
     Other restructuring      8,230        10,356     19,140         20,253
     costs
     Other merger and         3,243        6,871      9,512          11,556
     integration costs
     Other special project    -            -          6,669          -
     costs
     Income before income     $         $       $           $   
     taxes, excluding special 238,149      223,147    433,226        414,981
     project costs
     Income taxes, as         80,044       76,171     145,824        139,765
     adjusted
     Net income excluding     $         $       $           $   
     special project costs    158,105      146,976    287,402        275,216





The J. M. Smucker Company
Unaudited Non-GAAP Measures
                            Three Months Ended       Six Months Ended October
                            October 31,              31,
                            2012        2011         2012           2011
                            (Dollars in thousands, except per share data)
Earnings before interest,   $        $         $           $   
taxes, depreciation, and    310,483     273,823      565,187        513,988
amortization^(4)
        % of net sales      19.1%       18.1%        18.8%          19.0%
Free cash flow ^(5)         $        $        $           $   
                            130,723     50,097       261,160        (75,773)
^(4)    Reconciliation to
        net income:
        Net income          $        $         $           $   
                            148,847     127,247      259,710        238,770
        Income taxes        75,371      65,954       131,773        121,257
        Interest income     (378)       (324)        (656)          (626)
        Interest expense    24,266      19,448       48,148         34,870
        Depreciation        35,920      28,227       71,974         55,796
        Depreciation -
        restructuring and   2,254       12,712       5,844          23,127
        merger and
        integration
        Amortization        24,203      20,559       48,394         40,794
        Earnings before
        interest, taxes,    $        $         $           $   
        depreciation, and   310,483     273,823      565,187        513,988
        amortization
        Reconciliation to
^(5)    cash provided by
        operating
        activities:
        Cash provided by    $        $         $           $    
        operating           182,899     118,172      359,618        59,934
        activities
        Additions to
        property, plant,    (52,176)    (68,075)     (98,458)       (135,707)
        and equipment
        Free cash flow      $        $        $           $   
                            130,723     50,097       261,160        (75,773)
The Company uses non-GAAP measures including net sales adjusted for the
noncomparable impact of acquisition, divestiture, and foreign exchange rate;
gross profit, operating income, net income, and net income per diluted share,
excluding special project costs; earnings before interest, taxes,
depreciation, and amortization ("EBITDA"); and free cash flow as key measures
for purposes of evaluating performance internally. These non-GAAP measures are
not intended to replace the presentation of financial results in accordance
with U.S. GAAP. Rather, the presentation of these non-GAAP measures supplement
other metrics used by management to internally evaluate its businesses, and
facilitates the comparison of past and present operations. These non-GAAP
measures may not be comparable to similar measures used by other companies and
may exclude certain nondiscretionary expenses and cash payments.





The J. M. Smucker Company
Unaudited Reportable Segments
                          Three Months Ended October  Six Months Ended October
                          31,                         31,
                          2012           2011         2012         2011
                          (Dollars in thousands)
Net sales:
 U.S. Retail Coffee       $         $       $         $   
                          622,470        617,523      1,143,263    1,117,632
 U.S. Retail Consumer     619,308        615,192      1,147,752    1,074,692
 Foods
 International,
 Foodservice, and Natural 386,968        281,190      707,434      510,464
 Foods
Total net sales           $           $         $         $   
                          1,628,746      1,513,905    2,998,449    2,702,788
Segment profit:
 U.S. Retail Coffee       $         $       $       $     
                          158,211        139,958      284,599      279,669
 U.S. Retail Consumer     111,126        115,955      218,961      194,974
 Foods
 International,
 Foodservice, and Natural 58,180         38,991       98,866       77,536
 Foods
Total segment profit      $         $       $       $     
                          327,517        294,904      602,426      552,179
 Interest income          378            324          656          626
 Interest expense         (24,266)       (19,448)     (48,148)     (34,870)
 Share-based compensation (6,009)        (5,593)      (10,125)     (10,744)
 expense
 Cost of products sold -
 restructuring and merger (2,458)        (12,719)     (6,422)      (23,145)
 and integration
 Other restructuring      (8,230)        (10,356)     (19,140)     (20,253)
 costs
 Other merger and         (3,243)        (6,871)      (9,512)      (11,556)
 integration costs
 Other special project    -              -            (6,669)      -
 costs
 Corporate administrative (60,035)       (47,751)     (112,491)    (94,164)
 expenses
 Other income - net       564            711          908          1,954
Income before income      $         $       $       $     
taxes                     224,218        193,201      391,483      360,027
Segment profit margin:
 U.S. Retail Coffee      25.4%          22.7%        24.9%        25.0%
 U.S. Retail Consumer     17.9%          18.8%        19.1%        18.1%
 Foods
 International,
 Foodservice, and Natural 15.0%          13.9%        14.0%        15.2%
 Foods

(Logo: http://photos.prnewswire.com/prnh/20071219/SMUCKERLOGO )



SOURCE The J. M. Smucker Company

Website: http://www.smuckers.com
Contact: Investors, Sonal Robinson, Vice President, Investor Relations or
Media, Maribeth Badertscher, Vice President, Corporate Communications, both of
The J. M. Smucker Company, +1-330-682-3000
 
Press spacebar to pause and continue. Press esc to stop.