Hormel Foods (HRL) 8-K Hormel Foods Achieves Record Second Quarter Earnings

Exhibit 99

INVESTOR CONTACT:	MEDIA CONTACT:
Jana Haynes	Julie Craven
(507) 437-5248	(507) 437-5345
jlhaynes@hormel.com	media@hormel.com

HORMEL FOODS ACHIEVES RECORD SECOND QUARTER EARNINGS

AUSTIN, Minn. (May 20, 2015) – Hormel Foods Corporation (NYSE: HRL) today reported record performance for the fiscal year 2015 second quarter.  All comparisons are to the second quarter of fiscal 2014.

SUMMARY

Second Quarter

¨Record diluted EPS of $0.67, up 29 percent from $0.52 per share.

¨Record dollar sales of $2.3 billion, increased 2 percent; volume up 5 percent.

¨Total segment operating profit increased 29 percent.

¨Refrigerated Foods segment operating profit up 52 percent; volume up 1 percent; dollar sales down 8 percent.

¨Jennie-O Turkey Store segment operating profit up 41 percent; volume up 14 percent; dollar sales up 15 percent.

¨Grocery Products segment operating profit up 1 percent; volume up 4 percent; dollar sales up 1 percent.  Excluding incremental net sales of MegaMex Foods products, volume down 4 percent and dollar sales down 5 percent.

¨Specialty Foods segment operating profit up 11 percent; volume up 17 percent; dollar sales up 32 percent.  Excluding incremental sales of CytoSport Holdings, Inc. (“CytoSport”) products, volume down 6 percent and dollar sales down 6 percent.

¨International & Other segment operating profit up 2 percent; volume down 3 percent; dollar sales down 7 percent.

The company reported fiscal 2015 second quarter net earnings of $180.2 million, up 29 percent from net earnings of $140.1 million a year earlier.  Diluted earnings per share for the quarter were $0.67, up 29 percent compared to $0.52 last year.  Sales for the quarter were $2.3 billion, up 2 percent from the same period in fiscal 2014.

COMMENTARY

“We achieved record second quarter earnings and sales, driving double-digit earnings growth with all five segments delivering increases” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.

“Although declining pork markets drove lower pricing and net sales this quarter, Refrigerated Foods increased operating profit by 52 percent with strong sales growth of foodservice and retail value-added products,” commented Ettinger.  “Jennie-O Turkey Store entered the quarter with excellent momentum and drove robust sales and earnings gains, but exited the quarter with substantial supply chain challenges brought on by avian influenza.  Grocery Products benefited from input cost relief and growth of our SPAM® family of products, while the export business in our International segment continued to be challenged by port issues and the strong U.S. dollar,” commented Ettinger.  “Specialty Foods delivered earnings growth as the team continues to achieve synergies with the recently acquired CytoSport business.”

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SEGMENT OPERATING HIGHLIGHTS – SECOND QUARTER

Refrigerated Foods (45% of Net Sales, 40% of Total Segment Operating Profit)

Segment profit for Refrigerated Foods increased 52 percent.  Results were driven by lower input costs along with strong sales growth of value-added items, including retail sales of HORMEL® pepperoni and HORMEL® GATHERINGSTM party trays and foodservice sales of HORMEL® BACON 1TM fully cooked bacon and HORMEL® pizza toppings.  Sales were down 8 percent this quarter, reflecting lower pricing due to declining pork markets and the dissolution of the Precept Foods joint venture.

Jennie-O Turkey Store (19% of Net Sales, 26% of Total Segment Operating Profit)

Even as avian influenza began to impact operations towards the end of the second quarter, segment profit for Jennie-O Turkey Store grew 41 percent, driven by the continued growth of value-added products and lower grain and fuel input costs as compared to last year.  Sales for the quarter increased 15 percent, including strong sales of JENNIE-O® lean ground turkey and JENNIE-O® rotisserie turkey.

Grocery Products (17% of Net Sales, 19% of Total Segment Operating Profit)

Grocery Products segment profit increased 1 percent and sales were up 1 percent, including the additional net sales of MegaMex Foods products not included in the prior year.  Lower input costs and strong sales growth of items such as our SPAM® family of products and WHOLLY GUACAMOLE® dips in our MegaMex Foods joint venture contributed to the gains.  The segment experienced softer sales of HORMEL® COMPLEATS® microwave meals.

Specialty Foods (13% of Net Sales, 7% of Total Segment Operating Profit)

Specialty Foods posted an 11 percent increase in segment profits despite a $4.5 million charge due to the closure of its CytoSport production facility in Benicia, California.  Segment sales increased 32 percent, largely attributable to the addition of MUSCLE MILK® protein nutrition product sales.

International & Other (6% of Net Sales, 8% of Total Segment Operating Profit)

International & Other segment profit increased 2 percent, driven by improved joint venture results.  Sales were down 7 percent, primarily due to declines in exports which were hampered by port challenges and demand pressure from the strong US dollar.

OUTLOOK

“While we enjoyed an excellent first half, we expect Jennie-O Turkey Store to be significantly challenged going forward due to the impacts of avian influenza on our turkey supply chain,” commented Ettinger.  “Refrigerated Foods and Grocery Products will continue to benefit from value-added product growth and lower pork input costs.  Specialty Foods is positioned to deliver substantial earnings increases in the back half with the CytoSport business.  Taking these factors into consideration, we are maintaining our 2015 non-GAAP1earnings guidance at the lower end of our previously stated $2.50 to $2.60 per share2 range.”

DIVIDENDS

Effective May 15, 2015, the company paid its 347th consecutive quarterly dividend, at the annual rate of $1.00.

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CONFERENCE CALL

A conference call will be webcast at 7:00 a.m. CT on Wednesday, May 20, 2015. Access is available at www.hormelfoods.com.  The call will also be available via telephone by dialing 888-430-8705 and providing the access code 3883596.  An audio replay is available by calling 888-203-1112 and entering access code 3883596.  The audio replay will be available beginning at 10:00 a.m. CT on Wednesday, May 20, 2015, through 10:00 a.m. CT on Wednesday, June 3, 2015.  The webcast replay will be available at 10:00 a.m. CT, Wednesday, May 20, 2015, and will remain on our website for one year.

1 COMPARISON OF U.S. GAAP TO NON-GAAP FINANCIAL MEASUREMENTS

The non-GAAP adjusted financial measurements are presented to provide investors additional information to facilitate the comparison of past and present operations.  The non-GAAP adjusted financial measurements are used for internal purposes to evaluate the results of operations and to measure a component of certain employee incentive plans in fiscal year 2015.  Non-GAAP measurements are not intended to be a substitute for U.S. GAAP measurements in analyzing financial performance.  These non-GAAP measurements are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

2 ADJUSTED EARNINGS PER SHARE GUIDANCE

Adjusted diluted net earnings per share excludes first quarter fiscal 2015 nonrecurring charges of $0.05 relating to the closure of the Stockton, California, manufacturing facility and the exit from international joint venture businesses.  Subtracting the excluded non-recurring charges relating to the closure of the Stockton, California, manufacturing facility and the exit from international joint venture businesses from the non-GAAP adjusted diluted earnings per share guidance range of $2.50 to $2.60 per share results in a U.S. GAAP diluted earnings per share guidance range for fiscal year 2015 of $2.45 to $2.55 per share.  Adjusted diluted earnings per share provides shareholders a more clear view of comparable results.

About Hormel Foods

Hormel Foods Corporation, based in Austin, Minn., is a multinational manufacturer and marketer of consumer-branded food and meat products, many of which are among the best known and trusted in the food industry. The company leverages its extensive expertise, innovation and high competencies in pork and turkey processing and marketing to bring branded, value-added products to the global marketplace. The company is a member of the Standard & Poor’s (S&P) 500 Index, S&P 500 Dividend Aristocrats for 2014, was named the 2013 Sustainable Supply Chain of the Year by Refrigerated & Frozen Foods magazine, and was again named one of “The 100 Best Corporate Citizens” by Corporate Responsibility Magazine for the seventh year in a row. Hormel Foods was also recognized as a 2015 Military Friendly Employer by G.I. Jobs magazine, on the 2015 Best for Vets Employers List by Military Times, and was named one of the 2015 40 Best Companies for Leaders by Chief Executive magazine. The company enjoys a strong reputation among consumers, retail grocers, foodservice and industrial customers for products highly regarded for quality, taste, nutrition, convenience and value. For more information, visit http://www.hormelfoods.com.

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FORWARD-LOOKING STATEMENTS

This news release contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding Forward-Looking Statements and Risk Factors on pages 29-36 in the company’s Form 10-Q for the fiscal quarter ended January 25, 2015, which includes information about the risk of outbreaks of disease among livestock and poultry flocks to the company’s revenues and operating margins.  The company’s Form 10-Q can be accessed at www.hormelfoods.com under “Investors-SEC Filings.”

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Segment Data

Fiscal 2015 Second Quarter Segment Operating Results (dollars in thousands)

	SECOND QUARTER – 13 WEEKS ENDED
NET SALES	April 26, 2015			April 27, 2014			% Change
Grocery Products		$	397,265		$	392,030		1.3
Refrigerated Foods		1,022,511			1,111,244			(8.0)
Jennie-O Turkey Store		438,912			380,425			15.4
Specialty Foods		287,424			217,176			32.3
International & Other		133,233			143,991			(7.5)
Total		$	2,279,345		$	2,244,866		1.5
OPERATING PROFIT
Grocery Products		$	55,327		$	54,890		0.8
Refrigerated Foods		114,837			75,397			52.3
Jennie-O Turkey Store		74,596			52,808			41.3
Specialty Foods		21,144			19,134			10.5
International & Other		21,383			20,863			2.5
Total segment operating profit		287,287			223,092			28.8
Net interest and investment expense (income)		1,966			3,399			(42.2)
General corporate expense		9,824			7,152			37.4
Noncontrolling interest		234			616			(62.0)
Earnings before income taxes		$	275,731		$	213,157		29.4

	YEAR TO DATE – 26 WEEKS ENDED
NET SALES	April 26, 2015			April 27, 2014			% Change
Grocery Products		$	807,016		$	793,550		1.7
Refrigerated Foods		2,166,726			2,239,665			(3.3)
Jennie-O Turkey Store		878,931			779,825			12.7
Specialty Foods		550,698			413,155			33.3
International & Other		271,047			261,343			3.7
Total		$	4,674,418		$	4,487,538		4.2
OPERATING PROFIT
Grocery Products		$	96,702		$	111,232		(13.1)
Refrigerated Foods		215,989			160,696			34.4
Jennie-O Turkey Store		167,616			112,353			49.2
Specialty Foods		39,720			40,389			(1.7)
International & Other		35,767			43,420			(17.6)
Total segment operating profit		555,794			468,090			18.7
Net interest and investment expense (income)		3,895			5,320			(26.8)
General corporate expense		13,077			16,068			(18.6)
Noncontrolling interest		946			1,726			(45.2)
Earnings before income taxes		$	539,768		$	448,428		20.4

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HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited) (In thousands, except per share amounts)

	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	April 26, 2015			April 27, 2014			April 26, 2015			April 27, 2014
Net sales		$	2,279,345		$	2,244,866		$	4,674,418		$	4,487,538
Cost of products sold		1,819,789			1,866,108			3,770,257			3,710,138
GROSS PROFIT		459,556			378,758			904,161			777,400
Selling, general and administrative		189,733			165,785			370,032			331,974
Equity in earnings of affiliates		7,874			3,583			9,534			8,322
OPERATING INCOME		277,697			216,556			543,663			453,748
Other income & expenses:
Interest & investment income (expense)		1,117			(306)			2,266			867
Interest expense		(3,083)			(3,093)			(6,161)			(6,187)
EARNINGS BEFORE INCOME TAXES		275,731			213,157			539,768			448,428
Provision for income taxes		95,296			72,451			186,903			153,264
(effective tax rate)		34.56%			33.99%			34.63%			34.18%
NET EARNINGS		180,435			140,706			352,865			295,164
Less: net earnings attributable to noncontrolling interest		234			616			946			1,726
NET EARNINGS ATTRIBUTABLE TO		$	180,201		$	140,090		$	351,919		$	293,438
HORMEL FOODS CORPORATION
NET EARNINGS PER SHARE
Basic		$	0.68		$	0.53		$	1.33		$	1.11
Diluted		$	0.67		$	0.52		$	1.30		$	1.09
WEIGHTED AVG. SHARES OUTSTANDING
Basic		264,028			263,926			263,852			263,839
Diluted		270,444			270,410			270,253			270,317
DIVIDENDS DECLARED
PER SHARE		$	0.25		$	0.20		$	0.50		$	0.40

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HORMEL FOODS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In thousands)

	April 26, 2015				October 26, 2014
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$     624,395				$     334,174
Accounts receivable				578,726				609,526
Inventories				963,481				1,054,552
Income taxes receivable				28,739				25,678
Deferred income taxes				86,853				86,853
Prepaid expenses				14,546				15,250
Other current assets				5,691				6,738
TOTAL CURRENT ASSETS				2,302,431				2,132,771
INTANGIBLES				1,779,787				1,781,296
OTHER ASSETS				550,712				539,785
PROPERTY, PLANT & EQUIPMENT, NET				990,068				1,001,767
TOTAL ASSETS			$  5,622,998				$  5,455,619

LIABILITIES AND SHAREHOLDERS’ INVESTMENT

TOTAL CURRENT LIABILITIES	$     870,182		$     954,692
LONG-TERM DEBT – LESS CURRENT MATURITIES		250,000		250,000
OTHER LONG-TERM LIABILITIES		659,001		638,871
SHAREHOLDERS’ INVESTMENT		3,843,815		3,612,056
TOTAL LIAB. & SHAREHOLDERS’ INVESTMENT	$  5,622,998		$  5,455,619

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HORMEL FOODS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (In thousands)

	Twenty-Six Weeks Ended
	April 26, 2015						April 27, 2014
OPERATING ACTIVITIES
Net earnings		$  352,865						$  295,164
Depreciation and amortization of intangibles			65,727								63,684
Decrease (increase) in working capital			17,477								(87,834			)
Other					9,668						4,021
NET CASH PROVIDED BY OPERATING ACTIVITIES					445,737								275,035
INVESTING ACTIVITIES
Acquisitions of businesses/intangibles					-								(41,502	)
Net purchases of property/equipment					(43,934	)							(70,832	)
Decrease (increase) in investments, equity in affiliates, and other assets					5,379								(111	)
NET CASH USED IN INVESTING ACTIVITIES					(38,555	)			(112,445					)
FINANCING ACTIVITIES
Dividends paid on common stock					(118,715	)			(97,594					)
Share repurchase					-				(15,126					)
Other					3,476							15,584
NET CASH USED IN FINANCING ACTIVITIES	(115,239					)			(97,136					)
Effect of exchange rate changes on cash				(1,722		)						(138		)
INCREASE IN CASH AND CASH EQUIVALENTS				290,221								65,316
Cash and cash equivalents at beginning of year				334,174								434,014
CASH AND CASH EQUIVALENTS AT END OF QUARTER			$  624,395							$  499,330

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