The global consumer-goods company Sara Lee Corp. reported strong results for fiscal 2010. Operating income was up significantly for the year, driven by improved operating segment income across all five continuing business segments.
In particular, the North American Retail and International Beverage segments showed impressive results, while the North American Foodservice segment increased operating segment income in a challenging environment. The discontinued International Household and Body Care businesses also reported strong fiscal 2010 results. Diluted earnings per share increased significantly in fiscal 2010, both on a reported and an adjusted basis. Net sales and unit volumes decreased in fiscal 2010, due to price competition and heavy promotional activity in various categories, as well as the impact of planned exits from low margin business. Cash from operations increased in fiscal 2010 driven by strong operating results and disciplined working capital management.
The company’s adjusted net sales decreased 2.8% for the year. Total Sara Lee unit volumes decreased 3.7% in fiscal 2010; however, excluding the impact of the 53rd week and planned exits from commodity and kosher meats in the North American Retail segment, total Sara Lee unit volumes were down 1.5% in fiscal 2010.
Source: Sara Lee Corporation