The J. M. Smucker Company Announces Fiscal 2014 Fourth Quarter and Full Year Results

 The J. M. Smucker Company Announces Fiscal 2014 Fourth Quarter and Full Year
                                   Results

-- Record earnings for fiscal 2014

-- Q4 U.S. Retail volume up 1 percent in Coffee and up 3 percent in Consumer
Foods

-- Q4 net sales decreased 8 percent reflecting pricing actions

-- 2015 net sales and earnings outlook provided

PR Newswire

ORRVILLE, Ohio, June 5, 2014

ORRVILLE, Ohio, June 5, 2014 /PRNewswire/ --The J. M. Smucker Company (NYSE:
SJM) today announced results for the fourth quarter and year ended April 30,
2014. Results for the quarter and year ended April 30, 2014, include the
operations of Enray Inc. ("Enray") since the completion of the acquisition on
August 20, 2013, and the impact of the Company's licensing and distribution
agreement with Cumberland Packing Corp. ("Cumberland"), which commenced on
July 1, 2013.

Executive Summary

                 Three Months Ended April 30,   Year Ended April 30,
                 2014     2013      % Increase  2014      2013      % Increase
                                    (Decrease)                      (Decrease)
                 (Dollars in millions, except per share data)
Net sales        $       $         (8%)        $         $         (5%)
                 1,234.3  1,339.7              5,610.6  5,897.7
Operating income $      $       (11%)       $       $       1%
                 191.4   214.0                 919.0     910.4
 % of net sales  15.5%    16.0%                 16.4%     15.4%
Net income:
 Net income      $      $       (9%)        $       $       4%
                 118.5   130.3                 565.2     544.2
 Net income per
 common share -  $     $      (5%)        $      $      8%
 assuming        1.16    1.22                  5.42      5.00
 dilution
Operating income
excluding        $      $       (11%)       $       $       (2%)
special project  199.9   225.2                 954.0     971.4
costs
 % of net sales  16.2%    16.8%                 17.0%     16.5%
Income excluding
special project
costs:
 Income          $      $       (10%)       $       $       1%
                 124.0   138.0                 588.5     584.8
 Income per
 common share -  $     $      (6%)        $      $      5%
 assuming        1.21    1.29                  5.64      5.37
 dilution

  oFourth quarter net sales decreased 8 percent in 2014, compared to 2013,
    driven by pricing actions in the quarter. As expected, pricing actions in
    U.S. Retail Coffee in the quarter reflect decisions made to pass through
    lower costs realized earlier in the year. The impact of the exit of
    certain portions of the Company's business in its International,
    Foodservice, and Natural Foods segment and unfavorable sales mix also
    contributed to the net sales decrease.
  oOperating income excluding the impact of restructuring, merger and
    integration, and certain pension settlement costs ("special project
    costs") decreased 11 percent in the fourth quarter of 2014, compared to
    2013, as a result of a decrease in gross profit which was somewhat offset
    by a decrease in marketing and corporate administrative expenses.
  oIncome excluding special project costs decreased 10 percent in the fourth
    quarter of 2014, compared to 2013, reflecting the decrease in operating
    income and the impact of a higher effective tax rate partially offset by
    the benefit of other income items and lower interest expense.
  oFourth quarter income per diluted share, excluding special project costs,
    decreased 6 percent in 2014, compared to 2013, yet benefited from the
    Company's share repurchase activities over the past year, including 2.9
    million shares repurchased during the fourth quarter.

"Our 2014 record earnings per share achievement once again demonstrates that
the principles that have guided our Company for 117 years continue to deliver
results regardless of the headwinds encountered," said Richard Smucker, Chief
Executive Officer. "We delivered 5 percent non-GAAP earnings per share growth
and returned over $730 million in cash to shareholders through dividends and
share repurchases in 2014. These accomplishments are a product of our
long-term, forward-looking growth strategy, the strength of our iconic brands,
an aggressive innovation pipeline, and the commitment and perseverance of our
team."

"We made progress in fiscal 2014 growing volume in our U.S. retail businesses,
optimizing price points, enhancing merchandising, and investing in the future
of our Company," commented Vince Byrd, President and Chief Operating Officer.
"Our brand portfolio's celebration of the U.S. Olympic and Paralympic Teams
was a success. We further optimized our supply chain, and in several areas,
continued expansion of needed manufacturing capacity. We also introduced more
than 100 new products, and are excited about the opportunities presented by
the newly integrated Enray business. As we move into fiscal 2015, we know
that there is more work to be done with our foodservice coffee business, but
are encouraged by the strength of our brand plans and the momentum across the
businesses."

Net Sales

              Three Months Ended April 30,         Year Ended April 30,
              2014     2013      Increase    %     2014     2013      Increase    %
                                 (Decrease)                           (Decrease)
              (Dollars in millions)
Net sales     $       $        $       (8%)  $       $        $        (5%)
              1,234.3  1,339.7   (105.4)         5,610.6  5,897.7  (287.1)
Adjust for
certain
noncomparable
items:
 Enray        (13.9)   -         (13.9)      (1%)  (39.9)   -         (39.9)      (1%)
 acquisition
 Cumberland
 distribution (8.5)    -         (8.5)       (1%)  (30.1)   -         (30.1)      (1%)
 agreement
 Foreign      9.0      -         9.0         1%    24.9     -         24.9        0%
 exchange
Net sales
adjusted for
certain       $       $        $       (9%)  $       $        $        (6%)
noncomparable 1,220.9  1,339.7   (118.8)         5,565.5  5,897.7  (332.2)

items
Amounts may
not add due
to rounding.

Net sales decreased 8 percent in the fourth quarter of 2014, compared to the
fourth quarter of 2013, primarily due to the impact of an 8 percent reduction
in net price realization largely due to retail and foodservice coffee. As
expected, pricing actions in U.S. Retail Coffee reflect decisions made to pass
through lower costs realized earlier in the year, whereas foodservice coffee
was impacted by higher trade spending, including an accrual adjustment. A
combined $22.4 million from the acquired Enray business and the Cumberland
distribution agreement contributed to net sales in the fourth quarter of
2014. Sales mix and foreign exchange were both unfavorable to net sales in
the fourth quarter of 2014, compared to the fourth quarter of 2013, and
reduced net sales by 2 percent and 1 percent, respectively.

Volume gains were realized in Crisco^® oils, the Company's flour brands, and
Folgers^® coffee, and were partially offset by the impact of the previously
announced business exits in the International, Foodservice, and Natural Foods
segment and declines in Pillsbury^® baking mixes and frosting.

Margins

                                Three Months Ended April  Year Ended April 30,
                                30,
                                2014           2013       2014        2013
                                (% of net sales)
Gross profit                    35.7%          35.8%      36.2%       34.4%
Selling, distribution, and
administrative expenses:
Marketing                      4.2%           4.8%       5.2%        5.0%
Selling                         3.8%           3.4%       3.6%        3.3%
Distribution                    3.1%           2.9%       2.8%        2.7%
General and administrative      6.6%           6.4%       6.0%        5.5%
Total selling, distribution,    17.7%          17.4%      17.6%       16.5%
and administrative expenses
Amortization                    2.0%           1.8%       1.8%        1.6%
Other restructuring, merger and
integration, and special        0.5%           0.5%       0.5%        0.8%
projects costs
Other operating expense         0.0%           0.0%       (0.0%)      (0.1%)
(income) - net
Operating income                15.5%          16.0%      16.4%       15.4%
Amounts may not add due to
rounding.

Gross profit decreased $39.4 million, or 8 percent, in the fourth quarter of
2014, compared to 2013. The prior year's fourth quarter gross profit
benefited from the recognition of lower manufacturing overhead. Excluding
special project costs as previously defined, gross profit decreased $40.6
million, or 8 percent, and decreased from 36.1 percent of net sales to 35.9
percent during the same period. Overall commodity costs were lower, primarily
for coffee, peanuts, flour, and oils, but were more than offset by lower net
price realization, most significantly for retail and foodservice coffee, and
resulted in the gross profit decline. Included as a component of lower net
price realization was a $7 million trade accrual adjustment related to the
Company's foodservice hot beverage business.

The additions of Enray and Cumberland contributed to gross profit in the
fourth quarter of 2014, but were more than offset by the impact of the exited
businesses in the International, Foodservice, and Natural Foods segment.
Unrealized mark-to-market adjustments on derivative contracts were a loss of
$1.8 million in the fourth quarter of 2014, compared to a loss of $2.3 million
in the fourth quarter of 2013.

Selling, distribution, and administrative expenses decreased $15.5 million in
the fourth quarter of 2014, compared to the fourth quarter of 2013, yet
increased as a percentage of net sales from 17.4 percent to 17.7 percent.
Marketing expenses decreased 19 percent in the fourth quarter of 2014, with a
portion of the decrease redirected to promotional spending, compared to 2013
which included a significant level of brand building investment. General and
administrative expenses decreased 6 percent, selling expenses increased 3
percent, and distribution expenses were flat during the same period.

Operating income decreased $22.6 million in the fourth quarter of 2014,
compared to 2013. Excluding special project costs in both periods, operating
income decreased $25.3 million, and decreased from 16.8 percent of net sales
in the fourth quarter of 2013 to 16.2 percent in the fourth quarter of 2014.

Interest Expense, Other Income, and Income Taxes
Net interest expense decreased $5.4 million in the fourth quarter of 2014,
compared to 2013, reflecting the impact of an interest rate swap the Company
entered into earlier in the fiscal year, converting a portion of its debt from
fixed-rate to variable-rate.

Net other income was $9.0 million in the fourth quarter of 2014 and included
realized gains on the sale of investment securities in the Company's
nonqualified pension plan as well as insurance proceeds and other
miscellaneous items, compared to net other expense of $0.1 million in the
fourth quarter of 2013.

Income taxes increased $3.7 million in the fourth quarter of 2014, compared to
2013, as an increase in the effective tax rate more than offset a decrease in
income before income taxes. The effective tax rate increased from 32.1
percent in the fourth quarter of 2013 to 35.5 percent in the fourth quarter of
2014 primarily due to higher foreign and state and local income taxes.

Segment Performance

                  Three Months Ended April 30,  Year Ended April 30,
                  2014      2013    % Increase  2014      2013      % Increase
                                    (Decrease)                      (Decrease)
                  (Dollars in millions)
Net sales:
 U.S. Retail      $       $     (12%)       $         $         (6%)
 Coffee          473.5    535.5               2,161.7  2,306.5
 U.S. Retail      $       $     (4%)        $         $         (2%)
 Consumer Foods   465.8    485.8               2,172.6  2,214.8
 International,   $       $                 $         $
 Foodservice, and 295.0    318.4   (7%)        1,276.3  1,376.4  (7%)
 Natural Foods
Segment profit:
 U.S. Retail      $       $     (10%)       $       $       6%
 Coffee          133.0    147.7               641.9     607.5
 U.S. Retail      $      $     6%          $       $       (4%)
 Consumer Foods   95.7      90.2              396.9     415.3
 International,   $      $                 $       $  
 Foodservice, and 31.5      49.5  (36%)       167.1     198.2     (16%)
 Natural Foods
Segment profit
margin:
 U.S. Retail      28.1%     27.6%               29.7%     26.3%
 Coffee
 U.S. Retail      20.6%     18.6%               18.3%     18.8%
 Consumer Foods
 International,
 Foodservice, and 10.7%     15.5%               13.1%     14.4%
 Natural Foods

U.S. Retail Coffee
The U.S. Retail Coffee segment volume increased 1 percent in the fourth
quarter of 2014, compared to a strong fourth quarter of 2013, as the Folgers^®
brand and Dunkin' Donuts^® packaged coffee both increased 1 percent. As
previously discussed, net price realization reflecting planned actions taken
to pass through lower commodity costs realized during the year caused segment
net sales to decrease 12 percent in the fourth quarter of 2014, compared to
the fourth quarter of 2013. Net sales of K-Cup^® packs decreased 10 percent
compared to last year's fourth quarter and resulted in full fiscal year
K-Cup^® pack net sales being down 1 percent, compared to 2013.

The U.S. Retail Coffee segment profit decreased $14.7 million, or 10 percent,
in the fourth quarter of 2014, compared to a record fourth quarter of 2013, as
the expected lower net price realization more than offset the benefit of lower
green coffee costs. For the fiscal year, lower net price realization did not
offset the benefit of lower green coffee costs. Unrealized mark-to-market
adjustments on derivative contracts were a loss of $2.5 million in the fourth
quarter of 2014, compared to a loss of $0.2 million in the fourth quarter of
2013. Segment profit was favorably impacted by a decrease in marketing and
other support costs.

U.S. Retail Consumer Foods
The U.S. Retail Consumer Foods segment volume increased 3 percent in the
fourth quarter of 2014, compared to the fourth quarter of 2013. Segment net
sales decreased 4 percent in the fourth quarter of 2014, compared to 2013,
reflecting lower net price realization primarily for the Crisco^® and Jif^®
brands. Net sales and volume of Smucker's^® fruit spreads decreased 2 percent
and 1 percent, respectively, in the fourth quarter of 2014. Jif^® brand
volume was flat and net sales decreased 1 percent as favorable mix associated
with Jif^®  Whips and alternate nut butters helped to offset overall lower
price. Smucker's^® Uncrustables^® frozen sandwiches achieved another strong
quarter, up 16 percent and 23 percent in net sales and volume, respectively.

Crisco^® brand volume increased 20 percent, while net sales decreased 5
percent in the fourth quarter of 2014, compared to 2013, impacted by a 9
percent list price decrease taken in the fourth quarter of 2014 and higher
promotional expense. Net sales and volume for the overall Pillsbury^® brand
decreased 14 percent and 4 percent, respectively. Canned milk net sales
decreased 2 percent and volume increased 5 percent during the fourth quarter
of 2014, compared to 2013.

The U.S. Retail Consumer Foods segment profit increased $5.5 million, or 6
percent, in the fourth quarter of 2014, compared to the fourth quarter of
2013. Unrealized mark-to-market adjustments on derivative contracts were a
gain of $3.9 million in the fourth quarter of 2014, compared to a loss of $0.6
million in the fourth quarter of 2013, and contributed $4.5 million to the
increase in segment profit growth. Overall commodity costs were lower,
primarily for peanuts, flour, and oils, and benefited segment profit slightly
as they were mostly offset by lower net price realization. A decrease in
marketing expenses also contributed to segment profit growth while
manufacturing costs increased in the fourth quarter of 2014, compared to 2013.

International, Foodservice, and Natural Foods
Net sales in the International, Foodservice, and Natural Foods segment
decreased 7 percent in the fourth quarter of 2014, compared to 2013.
Excluding the impacts of Enray, Cumberland, and foreign exchange, segment net
sales decreased 12 percent. The net sales decrease was driven by the exited
portions of the Company's hot beverage business and Smucker's^® Uncrustables^®
frozen sandwiches with foodservice customers. Unfavorable sales mix and
higher trade spending related to the Company's foodservice hot beverage
business, including a $7 million accrual adjustment, also contributed to the
net sales decrease. Segment volume decreased 3 percent, excluding the impact
of Enray and Cumberland, as increases in the Robin Hood^® and Five Roses^®
brands in Canada were more than offset by the impact of the exited foodservice
businesses.

Segment profit decreased $18.0 million, or 36 percent, in the fourth quarter
of 2014, compared to 2013, driven by increased foodservice trade spending,
including the accrual adjustment in the quarter. Lost profit on the exited
foodservice businesses and foreign exchange also contributed to reduced
segment profit. Unrealized mark-to-market adjustments on derivative contracts
were a loss of $3.1 million in the fourth quarter of 2014, while the impact in
the fourth quarter of 2013 was not significant. The additions of Enray and
Cumberland were not significant to segment profit in the fourth quarter of
2014.

Other Financial Results and Measures

                    Three Months Ended April   Year Ended April 30,
                    30,
                                  % Increase                      % Increase
                    2014   2013                2014      2013
                                  (Decrease)                       (Decrease)
                    (Dollars in millions)
Net cash provided   $    $                 $       $  
by operating        266.9  172.2  55%          856.0     855.8     0%
activities
Free cash flow      $    $    21%          $       $       (11%)
                    136.3  112.2               576.5     649.3
EBITDA              $    $    (4%)         $         $         2%
                    265.5  277.2               1,185.5  1,161.6
    % of net sales  21.5%  20.7%               21.1%     19.7%

Cash provided by operating activities was $856.0 million for 2014, essentially
flat compared to 2013. Free cash flow was $576.5 million for 2014, and
decreased $72.8 million compared to 2013, primarily due to a record level of
capital expenditures in 2014.

During the quarter ended April 30, 2014, the Company repurchased approximately
2.9 million common shares for $281.4 million. During 2014, the Company
returned $732.9 million in cash to shareholders, reflecting an 11 percent
increase in annual dividends paid per share and the repurchase of
approximately 5 percent of shares outstanding.

Outlook
For fiscal 2015, the Company expects net sales to increase approximately 5
percent, compared to 2014, reflecting the U.S. Retail Coffee price increase
announced earlier this week. Non-GAAP income per diluted share is expected in
the range of $5.95 to $6.05, which excludes certain noncomparable items of
$0.15 per share.

Effective in fiscal 2015, the Company will no longer elect to qualify
commodity and foreign exchange derivatives for hedge accounting treatment.
Additionally, the Company has modified its segment profit calculation and
redefined non-GAAP income and income per share measures to exclude gains and
losses on commodity and foreign exchange derivatives until the related
inventory is sold. The Company believes this change more accurately aligns
the derivative gains and losses with the underlying exposure being hedged and
allows the realization of the economic effect of the derivative without the
mark-to-market volatility within segment profit and non-GAAP income and income
per share. Consistent with the Company's treatment in 2014, special project
costs will continue to be excluded from segment profit and non-GAAP income and
income per share measures, and together with these gains and losses on
commodity and foreign exchange derivatives will represent certain
noncomparable items.

Conference Call
The Company will conduct an earnings conference call and webcast today,
Thursday, June 5, 2014, at 8:30 a.m. E.T. The webcast can be accessed from
the Company's new website at jmsmucker.com/investor-relations. For those
unable to listen to the live webcast, the webcast replay will be available at
jmsmucker.com/investor-relations following the call. An audio replay will
also be available following the call until Thursday, June 12, 2014, and can be
accessed by dialing 888-203-1112 or 719-457-0820, with an access code of
7130736.

Non-GAAP Measures
The Company uses non-GAAP financial measures including: net sales adjusted for
the noncomparable impact of the Enray acquisition, the Cumberland distribution
agreement, and foreign exchange rate; gross profit, operating income, income,
and 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. The
Company believes that these measures provide useful information to investors
because they are the measures used to evaluate performance on a comparable
year-over-year basis. The special project costs relate to specific
restructuring, merger and integration, and pension settlement projects that
are each nonrecurring in nature and can significantly affect the
year-over-year assessment of operating results. These non-GAAP financial
measures are not intended to replace the presentation of financial results in
accordance with U.S. GAAP. Rather, the presentation of these non-GAAP
financial measures supplements other metrics used by management to internally
evaluate its businesses, and facilitates the comparison of past and present
operations and liquidity. These non-GAAP financial 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 financial measures to the comparable GAAP financial measure for the
current and prior year periods is included in the "Unaudited Non-GAAP
Financial Measures" tables.

About The J. M. Smucker Company
For more than 115 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 natural
foods products 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^®, truRoots^®,
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 jmsmucker.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^® is a trademark of Keurig Green Mountain, Inc.,
used with permission.

The J. M. Smucker Company Forward-Looking Statements
This press release contains forward-looking statements, such as projected net
sales, 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 impact of food security concerns involving either the Company's or its
    competitors' products;
  othe impact of accidents, extreme weather, 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-Cup^® packs, 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
    Company's coffee businesses, which represent 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 on a timely
    basis and on acceptable terms;
  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 April 30,          Year Ended April 30,
                 2014         2013         % Increase  2014         2013         % Increase
                                           (Decrease)                            (Decrease)
                 (Dollars in millions, except per share data)
Net sales        $        $        -8%         $        $        -5%
                 1,234.3      1,339.7                  5,610.6      5,897.7
Cost of products 791.3        856.1        -8%         3,570.2      3,858.6      -7%
sold
Cost of products
sold -
restructuring    2.7          3.9          -33%        9.4          11.5         -19%
and merger and
integration
Gross Profit     440.3        479.7        -8%         2,031.0      2,027.6      0%
   Gross margin  35.7%        35.8%                    36.2%        34.4%
Selling,
distribution,
and              218.0        233.5        -7%         988.8        973.9        2%
administrative
expenses
Amortization     24.8         24.2         3%          98.9         96.8         2%
Other
restructuring
and merger and   5.8          7.3          -21%        25.6         42.8         -40%
integration
costs
Other special    -            -            n/m      -            6.7          -100%
project costs
Other operating
expense (income) 0.3          0.7          -55%        (1.3)        (3.0)        -58%
- net
Operating Income 191.4        214.0        -11%        919.0        910.4        1%
   Operating     15.5%        16.0%                    16.4%        15.4%
   margin
Interest expense (16.7)       (22.1)       -25%        (79.4)       (93.4)       -15%
- net
Other income     9.0          (0.1)        n/m      10.1         0.3          n/m
(expense) - net
Income Before    183.7        191.8        -4%         849.7        817.3        4%
Income Taxes
Income taxes     65.2         61.5         6%          284.5        273.1        4%
Net Income       $       $       -9%         $       $       4%
                 118.5       130.3                   565.2       544.2
   Net income    $       $                   $       $     
   per common     1.16       1.22      -5%          5.42       5.00      8%
   share
   Net income
   per common    $       $                   $       $     
   share -        1.16       1.22      -5%          5.42       5.00      8%
   assuming
   dilution
Dividends        $       $                   $       $     
declared per      0.58       0.52      12%          2.32       2.08      12%
common share
Weighted-average
shares           102,549,685  107,192,882  -4%         104,332,241  108,827,897  -4%
outstanding
Weighted-average
shares
outstanding –    102,561,353  107,209,912  -4%         104,346,587  108,851,153  -4%
assuming
dilution



The J. M. Smucker Company
Unaudited Condensed Consolidated Balance Sheets
                                          April 30, 2014     April 30, 2013
                                          (Dollars in millions)
Assets
Current Assets:
 Cash and cash equivalents                $          $        
                                          153.5              256.4
 Trade receivables, less allowance for    309.4              313.7
 doubtful accounts
 Inventories                              931.0              945.5
 Other current assets                     145.2              79.6
      Total Current Assets                1,539.1            1,595.2
Property, Plant, and Equipment - Net      1,265.6            1,142.5
Other Noncurrent Assets:
 Goodwill                                3,098.2            3,052.9
 Other intangible assets - net            3,024.3            3,089.4
 Other noncurrent assets                  144.9              151.8
      Total Other Noncurrent Assets       6,267.4            6,294.1
Total Assets                              $            $      
                                          9,072.1           9,031.8
Liabilities and Shareholders' Equity
Current Liabilities:
 Accounts payable                         $          $        
                                          289.2              285.8
 Current portion of long-term debt        100.0              50.0
 Revolving credit facility                248.4              -
 Other current liabilities                253.4              261.0
      Total Current Liabilities           891.0              596.8
Noncurrent Liabilities:
 Long-term debt                           1,879.8            1,967.8
 Other noncurrent liabilities             1,271.7            1,318.4
      Total Noncurrent Liabilities        3,151.5            3,286.2
Shareholders' Equity                      5,029.6            5,148.8
Total Liabilities and Shareholders'       $            $      
Equity                                    9,072.1           9,031.8



The J. M. Smucker Company
Unaudited Condensed Consolidated Statements of Cash Flow
                                Three Months Ended April  Year Ended April 30,
                                30,
                                2014         2013         2014       2013
                                (Dollars in millions)
Operating Activities
 Net income                     $       $       $      $    
                                 118.5       130.3        565.2    544.2
 Adjustments to reconcile net
 income to net cash provided by
 operating activities:
   Depreciation                 37.6         35.9         150.5      143.7
   Depreciation - restructuring 2.7          3.2          7.0        10.4
   and merger and integration
   Amortization                 24.8         24.2         98.9       96.8
   Share-based compensation     4.9          5.5          22.9       21.3
   expense
   Loss on sale of assets - net 1.3          1.4          3.0        4.8
   Gain on sale of marketable   (3.7)        -            (3.7)      -
   securities
   Changes in assets and
   liabilities, net of effect
   from businesses acquired:
       Trade receivables        56.5         46.2         6.1        33.2
       Inventories              (64.9)       (67.7)       15.4       15.2
       Accounts payable and     85.5         2.5          12.4       4.5
       accrued items
       Defined benefit pension  (3.1)        (9.5)        (9.4)      (40.0)
       contributions
       Income taxes             8.6          10.3         (9.5)      3.5
   Other - net                  (1.8)        (10.1)       (2.8)      18.2
Net Cash Provided by Operating  266.9        172.2        856.0      855.8
Activities
Investing Activities
 Businesses acquired, net of    -            -            (101.8)    -
 cash acquired
 Additions to property, plant,  (130.6)      (60.0)       (279.5)    (206.5)
 and equipment
 Sales and maturities of        10.0         -            10.0       -
 marketable securities
 Proceeds from disposal of      8.9          0.2          10.7       3.3
 property, plant, and equipment
 Other - net                    (1.4)        0.4          (9.7)      17.6
Net Cash Used for Investing     (113.1)      (59.4)       (370.3)    (185.6)
Activities
Financing Activities
 Revolving credit facility -    248.4        -            248.4      -
 net
 Repayments of long-term debt   (50.0)       (50.0)       (50.0)     (50.0)
 Quarterly dividends paid       (60.6)       (56.3)       (238.0)    (222.8)
 Purchase of treasury shares    (281.5)      (188.7)      (508.5)    (364.2)
 Proceeds from stock option     0.1          0.3          0.5        2.2
 exercises
 Other - net                    (26.7)       0.9          (27.9)     (6.2)
Net Cash Used for Financing     (170.3)      (293.8)      (575.5)    (641.0)
Activities
Effect of exchange rate changes 1.4          (1.4)        (13.1)     (2.5)
on cash
Net (decrease) increase in cash (15.1)       (182.4)      (102.9)    26.7
and cash equivalents
Cash and cash equivalents at    168.6        438.8        256.4      229.7
beginning of period
Cash and Cash Equivalents at    $       $       $      $    
End of Period                    153.5       256.4        153.5    256.4



The J. M. Smucker Company
Unaudited Non-GAAP Financial Measures
                      Three Months Ended April 30,  Year Ended April 30,
                      2014           2013           2014           2013
                      (Dollars in millions, except per share data)
Reconciliation to
gross profit:
Gross profit          $        $        $          $    
                      440.3          479.7          2,031.0       2,027.6
Cost of products sold
- restructuring and   2.7            3.9            9.4            11.5
merger and
integration
Gross profit          $        $        $          $    
excluding special     443.0          483.6          2,040.4       2,039.1
project costs
% of net sales        35.9%          36.1%          36.4%          34.6%
Reconciliation to
operating income:
Operating income      $        $        $        $     
                      191.4          214.0          919.0           910.4
Cost of products sold
- restructuring and   2.7            3.9            9.4            11.5
merger and
integration
Other restructuring
and merger and        5.8            7.3            25.6           42.8
integration costs
Other special project -              -              -              6.7
costs
Operating income      $        $        $        $     
excluding special     199.9          225.2          954.0           971.4
project costs
% of net sales        16.2%          16.8%          17.0%          16.5%
Reconciliation to net
income:
Net income            $        $        $        $     
                      118.5          130.3          565.2           544.2
Income taxes          65.2           61.5           284.5          273.1
Cost of products sold
- restructuring and   2.7            3.9            9.4            11.5
merger and
integration
Other restructuring
and merger and        5.8            7.3            25.6           42.8
integration costs
Other special project -              -              -              6.7
costs
Income before income  $        $        $        $     
taxes, excluding      192.2          203.0          884.7           878.3
special project costs
Income taxes, as      68.2           65.0           296.2          293.5
adjusted
Income excluding      $        $        $        $     
special project costs 124.0          138.0          588.5           584.8
Weighted-average
common shares         101,748,944    106,256,269    103,504,121    107,881,519
outstanding
Weighted-average
participating shares  800,741        936,613        828,120        946,378
outstanding
Total
weighted-average      102,549,685    107,192,882    104,332,241    108,827,897
shares outstanding
Dilutive effect of    11,668         17,030         14,346         23,256
stock options
Total
weighted-average      102,561,353    107,209,912    104,346,587    108,851,153
shares outstanding -
assuming dilution
Income per common
share excluding       $        $        $        $     
special project costs  1.21         1.29         5.64          5.37
- assuming dilution



The J. M. Smucker Company
Unaudited Non-GAAP Financial Measures
                     Three Months Ended April      Year Ended April 30,
                     30,
                     2014             2013         2014           2013
                     (Dollars in millions)
Reconciliation to
net income:
Net income           $          $        $         $     
                     118.5              130.3     565.2         544.2
Income taxes         65.2             61.5         284.5          273.1
Interest expense -   16.7             22.1         79.4           93.4
net
Depreciation         37.6             35.9         150.5          143.7
Depreciation -
restructuring and    2.7              3.2          7.0            10.4
merger and
integration
Amortization         24.8             24.2         98.9           96.8
Earnings before
interest, taxes,     $          $        $          $    
depreciation, and    265.5              277.2    1,185.5       1,161.6
amortization
% of net sales       21.5%            20.7%        21.1%          19.7%
Reconciliation to
cash provided by
operating
activities:
Net cash provided by $          $        $         $     
operating activities 266.9              172.2     856.0         855.8
Additions to
property, plant, and (130.6)          (60.0)       (279.5)        (206.5)
equipment
Free cash flow       $          $        $         $     
                     136.3              112.2     576.5         649.3
The Company uses non-GAAP financial measures including: net sales adjusted for
the noncomparable impact of the Enray acquisition, the Cumberland distribution
agreement, and foreign exchange rate; gross profit, operating income, income,
and 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. The Company
believes that these measures provide useful information to investors because
they are the measures used to evaluate performance on a comparable
year-over-year basis. The special project costs relate to specific
restructuring, merger and integration, and pension settlement projects that
are each nonrecurring in nature and can significantly affect the
year-over-year assessment of operating results. These non-GAAP financial
measures are not intended to replace the presentation of financial results in
accordance with U.S. GAAP. Rather, the presentation of these non-GAAP
financial measures supplements other metrics used by management to internally
evaluate its businesses, and facilitates the comparison of past and present
operations and liquidity. These non-GAAP financial 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 April  Year Ended April 30,
                            30,
                            2014         2013         2014         2013
                            (Dollars in millions)
Net sales:
 U.S. Retail Coffee         $       $       $        $    
                            473.5       535.5       2,161.7      2,306.5
 U.S. Retail Consumer Foods 465.8        485.8        2,172.6      2,214.8
 International,
 Foodservice, and Natural   295.0        318.4        1,276.3      1,376.4
 Foods
Total net sales             $        $        $        $    
                            1,234.3      1,339.7      5,610.6      5,897.7
Segment profit:
 U.S. Retail Coffee         $       $       $       $     
                            133.0       147.7       641.9       607.5
 U.S. Retail Consumer Foods 95.7         90.2         396.9        415.3
 International,
 Foodservice, and Natural   31.5         49.5         167.1        198.2
 Foods
Total segment profit        $       $       $        $    
                            260.2       287.4       1,205.9      1,221.0
 Interest expense - net     (16.7)       (22.1)       (79.4)       (93.4)
 Cost of products sold -
 restructuring and merger   (2.7)        (3.9)        (9.4)        (11.5)
 and integration
 Other restructuring and
 merger and integration     (5.8)        (7.3)        (25.6)       (42.8)
 costs
 Other special project      -            -            -            (6.7)
 costs
 Corporate administrative   (60.3)       (62.2)       (251.9)      (249.6)
 expenses
 Other income (expense) -  9.0          (0.1)        10.1         0.3
 net
Income before income taxes  $       $       $       $     
                            183.7       191.8       849.7       817.3
Segment profit margin:
 U.S. Retail Coffee        28.1%        27.6%        29.7%        26.3%
 U.S. Retail Consumer Foods 20.6%        18.6%        18.3%        18.8%
 International,
 Foodservice, and Natural   10.7%        15.5%        13.1%        14.4%
 Foods





The J. M. Smucker Company logo.

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SOURCE The J. M. Smucker Company

Website: http://www.jmsmucker.com
Contact: The J. M. Smucker Company, (330) 682-3000; Investors: Sonal Robinson,
Vice President, Investor Relations; Media: Maribeth Burns, Vice President,
Corporate Communications
 
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