The J. M. Smucker Company Announces Fiscal 2013 Third Quarter Results

    The J. M. Smucker Company Announces Fiscal 2013 Third Quarter Results

-- Net sales increased 6 percent driven by acquisition and favorable sales mix

-- EPS up 38 percent; EPS up 20 percent excluding special project costs

-- Strong cash generated from operations through first nine months

-- Company updates full year 2013 guidance

PR Newswire

ORRVILLE, Ohio, Feb. 15, 2013

ORRVILLE, Ohio, Feb. 15, 2013 /PRNewswire/ -- The J. M. Smucker Company (NYSE:
SJM) today announced results for the third quarter ended January 31, 2013, of
its 2013 fiscal year. Results for the quarter and nine months ended January
31, 2013 and 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 January 31,  Nine Months Ended January 31,
                 2013       2012     % Increase  2013      2012     % Increase
                                     (Decrease)                     (Decrease)
                 (Dollars in millions, except per share data)
Net sales        $         $       6%          $        $       9%
                 1,559.6    1,467.6              4,558.0   4,170.4
Operating income $        $      29%         $       $      17%
                 258.3     200.4               696.4    592.7
   % of net      16.6%      13.7%                15.3%     14.2%
   sales
Net income:
   Income        $        $      32%         $       $      16%
                 154.2     116.8               413.9    355.6
   Income per    $       $                 $      $   
   diluted       1.42      1.03    38%         3.78     3.12    21%
   share
Operating income
excluding        $        $      14%         $       $      10%
special project  266.3     232.9               746.2    680.2
costs
   % of net      17.1%      15.9%                16.4%     16.3%
   sales
Net income
excluding
special project
costs:
   Income        $        $      15%         $       $      8%
                 159.4     138.3               446.8    413.5
   Income per    $       $                 $      $   
   diluted       1.47      1.22    20%         4.08     3.63    12%
   share

  oThe acquired Sara Lee foodservice business contributed an incremental
    $59.7 million and $237.1 million to net sales for the three and nine
    months ended January 31, 2013, respectively.
  oOperating income and net income excluding the impact of restructuring,
    merger and integration, and certain pension settlement costs ("special
    project costs") increased 14 percent and 15 percent, respectively, in the
    third quarter, as the Company realized the benefit of overall lower
    commodity costs.
  oThird quarter net income per diluted share, excluding special project
    costs, increased 20 percent, which includes the benefit from the Company's
    share repurchase activities over the past year.

"We went into the important holiday season positioned for growth in many of
our categories and are pleased with the results," commented Richard Smucker,
Chief Executive Officer. "Our strategy of generating growth through
brand-building, innovation, acquisitions, and productivity initiatives made
possible solid third quarter and year-to-date results. Our brands continue to
demonstrate their strength and resilience. To our employees, we thank them
for their unending commitment to our strategy and their skill in executing
it."

"Our solid third quarter sales were punctuated by the continued growth of our
K-Cups®, momentum in the spreads business, and the initial contributions of
our Sara Lee foodservice business acquisition," added Vince Byrd, President
and Chief Operating Officer. "Our long-term business perspective coupled with
the ability to quickly adapt to changing market conditions has enabled us to
perform well in an unsettled business environment. The consumer response to
our tactical adjustments over the last few quarters has been positive and we
are well positioned for continued profitable growth."

Net Sales

              Three Months Ended January 31,        Nine Months Ended January 31,
              2013      2012      Increase    %     2013     2012      Increase    %
                                  (Decrease)                           (Decrease)
              (Dollars in millions)
Net sales     $        $1,467.6  $        6%    $      $        $         9%
              1,559.6            91.9              4,558.0  4,170.4  387.6
Adjust for
certain
noncomparable
items:
  Acquisition (59.7)    -         (59.7)      (4%)  (237.1)  -         (237.1)     (6%)
  Divestiture -         -         -           0%    -        (8.0)     8.0         0%
  Foreign     (3.4)     -         (3.4)       (0%)  0.0      -         0.0         0%
  exchange
Net sales
adjusted for
noncomparable
impact of     $        $1,467.6  $        2%    $      $        $         4%
acquisition,  1,496.5            28.9              4,320.9  4,162.5  158.4
divestiture,
and foreign
exchange
Amounts may not add due to rounding.

Net sales increased 6 percent in the third quarter of 2013, compared to the
third quarter of 2012, primarily due to the Sara Lee foodservice business
acquisition and favorable sales mix. As a result of the acquisition in
January of last year, an additional two months of net sales, totaling $59.7
million, were recognized in the third quarter of 2013.

Favorable sales mix in the quarter was driven by the Company's K-Cups® and
peanut butter products, which are higher priced per pound, compared to other
products within the Company's portfolio. Overall net price realization was
lower primarily due to price declines on coffee taken earlier in the fiscal
year. Volume gains realized in Jif® peanut butter and Smucker's® fruit
spreads were offset by decreases in the Pillsbury® brand and the Canadian
Robin Hood® and Five Roses® flour brands. Overall volume, based on weight and
excluding the incremental impact of the acquisition, decreased 1 percent in
the third quarter of 2013, compared to the third quarter of 2012.

Margins

                                 Three Months Ended  Nine Months Ended January
                                 January 31,         31,
                                 2013       2012     2013            2012
                                 (% of net sales)
Gross profit                     34.4%      31.7%    34.0%           33.5%
Selling, distribution, and
administrative expenses:
Marketing                       4.8%       4.8%     5.1%            5.1%
Selling                          3.3%       3.2%     3.3%            3.2%
Distribution                     2.6%       2.6%     2.6%            2.8%
General and administrative       5.4%       4.7%     5.3%            5.1%
Total selling, distribution, and 16.1%      15.3%    16.2%           16.3%
administrative expenses
Amortization                     1.6%       1.5%     1.6%            1.5%
Other restructuring, merger and
integration, and special         0.4%       1.3%     0.9%            1.2%
projects costs
Loss on divestiture              0.0%       0.0%     0.0%            0.3%
Other operating income - net     (0.3%)     (0.1%)   (0.1%)          (0.0%)
Operating income                 16.6%      13.7%    15.3%           14.2%
Amounts may not add due to rounding.

Gross profit increased $70.5 million, or 15 percent, in the third quarter of
2013, compared to 2012, due to favorable mix, lower commodity costs, the
impact of an additional two months of the Sara Lee foodservice business, and a
decrease in special project costs. Excluding special project costs, gross
profit increased $58.6 million, or 12 percent, and improved to 34.5 percent of
net sales in the third quarter of 2013, compared to 32.6 percent in the third
quarter of 2012.

Overall lower commodity costs during the third quarter of 2013, compared to
the third quarter of 2012, were driven by green coffee offset somewhat by
higher peanut costs. The favorable net impact of lower green coffee costs on
gross profit was primarily timing related. The Company reduced coffee prices
in May 2012 with the expectation that it would recognize lower green coffee
costs as it progressed through its fiscal year. The actual realization of
these lower costs during the quarter, in large part, offset the unfavorable
impact realized earlier in the year. Unrealized mark-to-market adjustments on
derivative contracts were a loss of $0.5 million in the third quarter of 2013,
compared to a gain of $2.1 million in the third quarter of 2012.

Total selling, distribution, and administrative expenses increased 12 percent
in the third quarter of 2013, compared to the third quarter of 2012, and
increased as a percentage of net sales from 15.3 percent to 16.1 percent.
Marketing, selling, and distribution expenses increased 6 percent, 10 percent,
and 5 percent, respectively, and were primarily driven by the acquired Sara
Lee foodservice business. General and administrative expenses increased 21
percent due to increased incentive compensation and employee benefit costs.

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

Operating income increased $57.9 million in the third quarter of 2013,
compared to 2012. Excluding special project costs in both periods, operating
income increased $33.4 million, or 14 percent, and increased from 15.9 percent
of net sales in 2012 to 17.1 percent in 2013.

Income Taxes

Income taxes increased $19.4 million, or 32 percent, in the third quarter of
2013, compared to 2012, reflecting an increase in income before income taxes.
The effective tax rate was 34.1 in both the third quarter of 2013 and 2012.

Segment Performance

                    Three Months Ended January  Nine Months Ended January 31,
                    31,
                    2013     2012   % Increase  2013      2012      % Increase
                                    (Decrease)                      (Decrease)
                    (Dollars in millions)
Net sales:
 U.S. Retail        $      $    (2%)        $         $         1%
 Coffee            627.7    637.9              1,771.0  1,755.5
 U.S. Retail        581.3    556.5  4%          1,729.0   1,631.2   6%
 Consumer Foods
 International,
 Foodservice, and   350.6    273.2  28%         1,058.0   783.7     35%
 Natural Foods
Segment profit:
 U.S. Retail        $      $    27%         $       $       10%
 Coffee            175.2    138.3              459.8     418.0
 U.S. Retail        106.2    106.6  (0%)        325.1     301.6     8%
 Consumer Foods
 International,
 Foodservice, and   49.9     39.0   28%         148.7     116.6     28%
 Natural Foods
Segment profit
margin:
 U.S. Retail        27.9%    21.7%              26.0%     23.8%
 Coffee
 U.S. Retail        18.3%    19.2%              18.8%     18.5%
 Consumer Foods
 International,
 Foodservice, and   14.2%    14.3%              14.1%     14.9%
 Natural Foods

U.S. Retail Coffee

The U.S. Retail Coffee segment net sales decreased 2 percent in the third
quarter of 2013, compared to the third quarter of 2012, reflecting price
declines taken over the past year. Segment volume increased 1 percent in the
third quarter of 2013, compared to the third quarter of 2012, led by K-Cups®,
Cafe Bustelo®, and Cafe Pilon®. Volume of the overall Folgers® brand was flat
as the growth experienced in K-Cups® was offset by a slight decline in roast
and ground that was attributed to the constraint for coffee containers, which
arose earlier in the fiscal year and is now resolved. Dunkin' Donuts®
packaged coffee volume decreased 2 percent. The impact of sales mix was
favorable due to K-Cups®. Net sales of K-Cups® increased $30.4 million, or 51
percent, compared to the third quarter of 2012, and contributed 5 percentage
points of growth to segment net sales, while contributing only 1 percentage
point of growth to volume.

The U.S. Retail Coffee segment profit increased $36.8 million, or 27 percent,
in the third quarter of 2013, compared to the third quarter of 2012. Green
coffee costs were significantly lower in the third quarter of 2013, compared
to the third quarter of 2012. The Company reduced coffee prices in May 2012
with the expectation that it would recognize lower green coffee costs as it
progressed through its fiscal year. The majority of these lower costs was
recognized during the quarter and, in large part, offset the unfavorable
impact realized earlier in the year. On a year-to-date basis, the net impact
of lower prices and green coffee costs has been relatively neutral to segment
profit. Mix also contributed to the increase in segment profit in the third
quarter of 2013, compared to 2012, offset somewhat by an increase in marketing
expenses. Unrealized mark-to-market adjustments on derivative contracts,
which represented a gain of $0.3 million in the third quarter of 2013,
compared to a gain of $2.5 million in the third quarter of 2012, had an
unfavorable impact on segment profit growth of $2.2 million.

U.S. Retail Consumer Foods

The U.S. Retail Consumer Foods segment net sales increased 4 percent in the
third quarter of 2013, compared to 2012, as the impact of favorable sales mix
and higher net price realization offset a 1 percent decline in segment
volume. Jif® brand net sales increased 21 percent in the third quarter of
2013, compared to 2012, reflecting a 17 percent volume increase. Jif® peanut
butter volume in last year's third quarter was significantly lower, impacted
by the 30 percent price increase at the beginning of that quarter along with
the consumer buy-in that occurred in advance of it. Smucker's® fruit spreads
net sales and volume increased 5 percent and 9 percent, respectively, in the
third quarter of 2013, compared to 2012. Net sales and volume of Smucker's®
Uncrustables® frozen sandwiches both increased 38 percent during the same
period, benefiting from new distribution.

Net sales for the Pillsbury® brand decreased 4 percent, while volume decreased
9 percent, in the third quarter of 2013, compared to 2012, with approximately
one-half of the volume decline due to the tonnage impact of the previously
announced cake mix downsizing. Canned milk net sales and volume decreased 10
percent and 5 percent, respectively, during the third quarter of 2013,
compared to 2012.

The U.S. Retail Consumer Foods segment profit was flat in the third quarter of
2013, compared to the third quarter of 2012 which benefited from the timing of
peanut butter pricing actions. Segment profit was positively impacted by mix
along with decreases in marketing and selling expenses. Overall raw material
costs recognized were higher in the third quarter of 2013, compared to 2012,
primarily due to peanuts. In anticipation of lower peanut costs in future
periods, the Company decreased peanut butter prices by approximately 10
percent late in the third quarter. As a result, higher peanut costs were not
fully recovered by net price realization and contributed to the flat
quarter-over-quarter segment profit. Unrealized mark-to-market adjustments on
derivative contracts were a gain of $0.4 million in the third quarter of 2013,
compared to a loss of $0.2 million in the third quarter of 2012.

International, Foodservice, and Natural Foods

Net sales in the International, Foodservice, and Natural Foods segment
increased 28 percent in the third quarter of 2013, compared to 2012. The
additional two months of Sara Lee foodservice business net sales totaled $59.7
million and represented 22 percentage points of the net sales growth.
Excluding the impact of acquisition and foreign exchange, segment net sales
increased 5 percent over the same period last year primarily due to sales mix,
driven by coffee, and higher net price realization. Volume was down 1 percent
primarily due to flour in Canada.

Segment profit increased $10.8 million, or 28 percent, in the third quarter of
2013, compared to 2012. The Sara Lee foodservice business, including the
profit from the additional two months of activity, contributed over one-half
of the segment profit increase in the third quarter of 2013, compared to
2012. Favorable mix contributed most of the remaining segment profit increase
offset somewhat by higher distribution expenses. Overall higher raw material
costs were more than offset by higher prices in the third quarter of 2013,
compared to the third quarter of 2012 which was impacted by an unfavorable
price to cost relationship, notably for coffee and natural beverages.
Unrealized mark-to-market adjustments on derivative contracts were a loss of
$0.5 million in the third quarter of 2013, compared to a loss of $0.4 million
in the third quarter of 2012.

Other Financial Results and Measures

                 Three Months Ended January 31,  Nine Months Ended January 31,
                 2013      2012     % Increase  2013     2012     % Increase
                                    (Decrease)                     (Decrease)
                 (Dollars in millions)
Net cash
provided by      $       $       (21%)        $       $       46%
operating        324.0    409.3                683.6    469.2
activities
Free cash flow   $       $       (21%)        $       $       97%
                 275.9    348.1                537.1    272.3
EBITDA           $       $       23%          $       $       14%
                 319.2    259.0                884.4    773.0
    % of net     20.5%     17.6%                 19.4%    18.5%
    sales

Cash provided by operating activities increased $214.4 million for the first
nine months of 2013, compared to 2012, primarily due to a lower amount of cash
required to fund inventory during the period, compared to 2012. Capital
expenditures decreased $50.4 million in the first nine months of 2013,
compared to 2012, and combined with the increase in cash provided by operating
activities resulted in a $264.8 million increase in free cash flow over the
same period.

Outlook

For fiscal 2013, the Company expects net sales to increase over 6 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 $5.17 to $5.22, which excludes special project costs of
approximately $0.40 per diluted share. Previously, the range was $5.12 to
$5.22 per diluted share excluding special project costs.

Conference Call

The Company will conduct an earnings conference call and webcast today,
Friday, February 15, 2013, 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, February 22, 2013, and can be accessed by dialing 888-203-1112
or 719-457-0820, with a pass code of 8394093.

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®, Cafe Bustelo®, Cafe 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, peanuts, soybean oil, wheat, milk, corn, 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 ultimately fully recover cost including
    the competitive, retailer, and consumer response, and the impact of the
    timing of the price changes to profits and cash flow in a particular
    period;
  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 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 January 31,        Nine Months Ended January 31,
                 2013         2012         % Increase  2013         2012         % Increase
                                           (Decrease)                            (Decrease)
                 (Dollars in thousands, except per share data)
Net sales        $           $           6%          $           $           9%
                 1,559,558   1,467,641               4,558,007    4,170,429
Cost of products 1,022,163    988,825      3%          3,002,506    2,738,715    10%
sold
Cost of products
sold -
restructuring    1,166        13,131       (91%)       7,588        36,276       (79%)
and merger and
integration
Gross Profit     536,229      465,685      15%         1,547,913    1,395,438    11%
   Gross margin  34.4%        31.7%                    34.0%        33.5%
Selling,
distribution,
and              251,016      225,016      12%         740,419      678,170      9%
administrative
expenses
Amortization     24,200       22,031       10%         72,594       62,825       16%
Other
restructuring
and merger and   6,870        19,422       (65%)       35,522       51,231       (31%)
integration
costs
Other special    -            -            n/m      6,669        -            n/m
project costs
Loss on          -            -            n/m      -            11,287       (100%)
divestiture
Other operating  (4,164)      (1,150)      n/m      (3,665)      (758)        n/m
income - net
Operating Income 258,307      200,366      29%         696,374      592,683      17%
   Operating     16.6%        13.7%                    15.3%        14.2%
   margin
Interest income  466          464          0%          1,122        1,090        3%
Interest expense (24,226)     (23,599)     3%          (72,374)     (58,469)     24%
Other (expense)  (553)        4            n/m      355          1,958        (82%)
income - net
Income Before    233,994      177,235      32%         625,477      537,262      16%
Income Taxes
Income taxes     79,826       60,391       32%         211,599      181,648      16%
Net Income       $         $         32%         $         $         16%
                 154,168      116,844                  413,878      355,614
   Net income    $       $                   $       $     
   per common     1.42       1.03      38%          3.78       3.12      21%
   share
   Net income
   per common    $       $                   $       $     
   share -        1.42       1.03      38%          3.78       3.12      21%
   assuming
   dilution
Dividends        $       $                   $       $     
declared per      0.52       0.48      8%           1.56       1.44      8%
common share
Weighted-average
shares           108,472,267  113,439,152  (4%)        109,355,131  113,869,911  (4%)
outstanding
Weighted-average
shares
outstanding –    108,491,922  113,488,277  (4%)        109,380,394  113,922,722  (4%)
assuming
dilution



The J. M. Smucker Company

Unaudited Condensed Consolidated Balance Sheets
                            January 31, 2013  April 30, 2012  January 31, 2012
                            (Dollars in thousands)
Assets
Current Assets:
 Cash and cash equivalents  $           $         $      
                            438,814           229,708         370,428
 Trade receivables          360,205           347,518         364,724
 Inventories                878,156           961,576         990,815
 Other current assets       68,770            104,663         80,026
     Total Current Assets   1,745,945         1,643,465       1,805,993
Property, Plant, and        1,121,615         1,096,089       1,064,299
Equipment - Net
Other Noncurrent Assets:
 Goodwill                  3,053,746         3,054,618       3,033,531
 Other intangible assets -  3,114,024         3,187,007       3,233,960
 net
 Other noncurrent assets    149,124           134,047         98,091
     Total Other Noncurrent 6,316,894         6,375,672       6,365,582
     Assets
                            $             $           $    
                            9,184,454         9,115,226       9,235,874
Liabilities and
Shareholders' Equity
Current Liabilities:
 Accounts payable           $           $         $      
                            251,584           274,725         232,415
 Current portion of         50,000            50,000          -
 long-term debt
 Other current liabilities  291,879           292,247         261,920
     Total Current          593,463           616,972         494,335
     Liabilities
Noncurrent Liabilities:
 Long-term debt             2,018,508         2,020,543       2,071,202
 Other noncurrent           1,312,247         1,314,325       1,286,197
 liabilities
     Total Noncurrent       3,330,755         3,334,868       3,357,399
     Liabilities
Shareholders' Equity        5,260,236         5,163,386       5,384,140
                            $             $           $    
                            9,184,454         9,115,226       9,235,874



The J. M. Smucker Company

Unaudited Condensed Consolidated Statements of Cash Flow
                                     Three Months Ended   Nine Months Ended
                                     January 31,          January 31,
                                     2013      2012       2013       2012
                                     (Dollars in thousands)
Operating Activities
 Net income                          $      $       $       $   
                                     154,168  116,844   413,878   355,614
 Adjustments to reconcile net income
 to net cash provided by operating
 activities:
    Depreciation                     35,826    27,960     107,800    83,756
    Depreciation - restructuring and 1,398     8,622      7,242      31,749
    merger and integration
    Amortization                     24,200    22,031     72,594     62,825
    Share-based compensation expense 5,316     3,970      15,821     16,524
    Other restructuring activities   (444)     5,173      (693)      6,942
    Loss on sale of assets - net     665       382        3,363      3,108
    Loss on divestiture              -         -          -          11,287
    Changes in assets and
    liabilities, net of effect from
    businesses acquired:
       Trade receivables             109,303   97,928     (12,988)   (8,434)
       Inventories                   97,500    194,251    82,906     (78,362)
       Accounts payable and accrued  (96,834)  (71,786)   2,017      (653)
       items
       Proceeds from settlement of   -         -          -          17,718
       interest rate swaps - net
       Defined benefit pension       (22,966)  (2,501)    (30,535)   (6,997)
       contributions
       Accrued and prepaid taxes     6,640     2,953      (6,783)    (30,116)
       Other - net                   9,249     3,478      29,017     4,278
Net Cash Provided by Operating       324,021   409,305    683,639    469,239
Activities
Investing Activities
 Businesses acquired, net of cash    -         (379,509)  -          (742,355)
 acquired
 Additions to property, plant, and   (48,081)  (61,184)   (146,539)  (196,891)
 equipment
 Proceeds from divestiture           -         -          -          9,268
 Sales and maturities of marketable  -         -          -          18,600
 securities
 Proceeds from disposal of property, 2,537     1,881      3,115      2,784
 plant, and equipment
 Other - net                         11,345    1,229      17,197     (1,021)
Net Cash Used for Investing          (34,199)  (437,583)  (126,227)  (909,615)
Activities
Financing Activities
 Proceeds from long-term debt - net  -         -          -          748,560
 Quarterly dividends paid            (56,299)  (54,564)   (166,475)  (159,389)
 Purchase of treasury shares         (188)     (45,930)   (175,490)  (90,522)
 Proceeds from stock option          1,121     1,201      1,881      1,719
 exercises
 Other - net                         447       2,186      (7,117)    (2,915)
Net Cash (Used for) Provided by      (54,919)  (97,107)   (347,201)  497,453
Financing Activities
Effect of exchange rate changes on   356       (475)      (1,105)    (6,494)
cash
Net increase (decrease) in cash and  235,259   (125,860)  209,106    50,583
cash equivalents
Cash and cash equivalents at         203,555   496,288    229,708    319,845
beginning of period
Cash and Cash Equivalents at End of  $      $       $       $   
Period                               438,814  370,428   438,814   370,428



The J. M. Smucker Company

Unaudited Non-GAAP Measures
                              Three Months Ended    Nine Months Ended January
                              January 31,           31,
                              2013       2012       2013           2012
                              (Dollars in thousands, except per share data)
Gross profit excluding        $       $       $             $ 
special project costs ^(1)    537,395    478,816    1,555,501     1,431,714
     % of net sales           34.5%      32.6%      34.1%          34.3%
Operating income excluding    $       $       $           $   
special project costs ^(2)    266,343    232,919    746,153        680,190
     % of net sales           17.1%      15.9%      16.4%          16.3%
Net income excluding special
project costs: ^(3)
     Income                   $       $       $           $   
                              159,415    138,319    446,817        413,535
     Income per common share  $      $      $        $     
     -- assuming dilution       1.47    1.22  4.08           3.63
^(1) Reconciliation to gross
     profit:
     Gross profit             $       $       $             $ 
                              536,229    465,685    1,547,913     1,395,438
     Cost of products sold -
     restructuring and merger 1,166      13,131     7,588          36,276
     and integration
     Gross profit excluding   $       $       $             $ 
     special project costs    537,395    478,816    1,555,501     1,431,714
^(2) Reconciliation to
     operating income:
     Operating income         $       $       $           $   
                              258,307    200,366    696,374        592,683
     Cost of products sold -
     restructuring and merger 1,166      13,131     7,588          36,276
     and integration
     Other restructuring and
     merger and integration   6,870      19,422     35,522         51,231
     costs
     Other special project    -          -          6,669          -
     costs
     Operating income         $       $       $           $   
     excluding special        266,343    232,919    746,153        680,190
     project costs
^(3) Reconciliation to net
     income:
     Net income               $       $       $           $   
                              154,168    116,844    413,878        355,614
     Income taxes             79,826     60,391     211,599        181,648
     Cost of products sold -
     restructuring and merger 1,166      13,131     7,588          36,276
     and integration
     Other restructuring and
     merger and integration   6,870      19,422     35,522         51,231
     costs
     Other special project    -          -          6,669          -
     costs
     Income before income     $       $       $           $   
     taxes, excluding special 242,030    209,788    675,256        624,769
     project costs
     Income taxes, as         82,615     71,469     228,439        211,234
     adjusted
     Net income excluding     $       $       $           $   
     special project costs    159,415    138,319    446,817        413,535





The J. M. Smucker Company

Unaudited Non-GAAP Measures
                          Three Months Ended      Nine Months Ended January
                          January 31,             31,
                          2013        2012        2013             2012
                          (Dollars in thousands, except per share data)
Earnings before interest, $        $        $             $   
taxes, depreciation, and  319,178     258,983     884,365          772,971
amortization^(4)
       % of net sales     20.5%       17.6%       19.4%            18.5%
Free cash flow ^(5)       $        $        $             $   
                          275,940     348,121     537,100          272,348
^(4)   Reconciliation to
       net income:
       Net income         $        $        $             $   
                          154,168     116,844     413,878          355,614
       Income taxes       79,826      60,391      211,599          181,648
       Interest income    (466)       (464)       (1,122)          (1,090)
       Interest expense   24,226      23,599      72,374           58,469
       Depreciation       35,826      27,960      107,800          83,756
       Depreciation -
       restructuring and  1,398       8,622       7,242            31,749
       merger and
       integration
       Amortization       24,200      22,031      72,594           62,825
       Earnings before
       interest, taxes,   $        $        $             $   
       depreciation, and  319,178     258,983     884,365          772,971
       amortization
       Reconciliation to
^(5)   cash provided by
       operating
       activities:
       Cash provided by   $        $        $             $   
       operating          324,021     409,305     683,639          469,239
       activities
       Additions to
       property, plant,   (48,081)    (61,184)    (146,539)        (196,891)
       and equipment
       Free cash flow     $        $        $             $   
                          275,940     348,121     537,100          272,348
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 January  Nine Months Ended January
                         31,                         31,
                         2013           2012         2013          2012
                         (Dollars in thousands)
Net sales:
 U.S. Retail Coffee      $         $       $          $   
                         627,717        637,886      1,770,980     1,755,518
 U.S. Retail Consumer    581,278        556,549      1,729,030     1,631,241
 Foods
 International,
 Foodservice, and        350,563        273,206      1,057,997     783,670
 Natural Foods
Total net sales          $           $         $          $   
                         1,559,558      1,467,641    4,558,007     4,170,429
Segment profit:
 U.S. Retail Coffee      $         $       $        $     
                         175,178        138,346      459,777       418,015
 U.S. Retail Consumer    106,161        106,645      325,122       301,619
 Foods
 International,
 Foodservice, and        49,870         39,029       148,736       116,565
 Natural Foods
Total segment profit     $         $       $        $     
                         331,209        284,020      933,635       836,199
 Interest income         466            464          1,122         1,090
 Interest expense        (24,226)       (23,599)     (72,374)      (58,469)
 Share-based             (5,131)        (3,576)      (15,256)      (14,320)
 compensation expense
 Cost of products sold -
 restructuring and       (1,166)        (13,131)     (7,588)       (36,276)
 merger and integration
 Other restructuring and
 merger and integration  (6,870)        (19,422)     (35,522)      (51,231)
 costs
 Other special project   -              -            (6,669)       -
 costs
 Corporate               (59,735)       (47,525)     (172,226)     (141,689)
 administrative expenses
 Other (expense) income  (553)          4            355           1,958
 - net
Income before income     $         $       $        $     
taxes                    233,994        177,235      625,477       537,262
Segment profit margin:
 U.S. Retail Coffee     27.9%          21.7%        26.0%         23.8%
 U.S. Retail Consumer    18.3%          19.2%        18.8%         18.5%
 Foods
 International,
 Foodservice, and        14.2%          14.3%        14.1%         14.9%
 Natural Foods



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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
 
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