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Wrigley's Third Quarter Profits Rise
Gum maker's sales bolster performance.
Wm. Wrigley Jr. Co., the world's largest maker of chewing and bubble gum, said its third-quarter profit rose on a 16-percent jump in sales as the company continues to realign its global operations.
According to a Forbes report, net income increased 3 percent to $129.7 million, compared with $125.8 million last year. The company booked a $6.1 million restructuring charge in the quarter, which lowered profit by 2 cents per share. Excluding charges, the company would have earned 59 cents per share.
Revenue rose to $1.1 billion from last year's $916.7 million, driven by stronger gum sales and performance at its newly acquired confectionery brands business.
Analysts surveyed by Thomson Financial projected earnings, excluding items, of 60 cents per share during the period.
"As expected, the acquisition of the new brands, including the impact of interest expense, was slightly dilutive in the period, and the restructuring costs associated with our supply chain realignment also negatively impacted earnings," Chief Operating Officer Ron Waters said in a statement. "We are confident the successful execution of these two major initiatives will make us a stronger competitor in the broader confectionery arena and contribute to long-term stockholder value."
Since midsummer, Wm. Wrigley Jr. Co. has been realigning its supply chain, including shifting some operations in Chicago, New Jersey and Wales, Great Britain. Wrigley acquired Life Savers and Creme Savers from Kraft Foods in June, seeing significant potential for these quality brands under Wrigley's confectionery focus and expertise.