Hershey Co – ‘8-K’ for 3/4/97 – EX-99

As of:  Tuesday, 3/4/97   ·   For:  3/4/97   ·   Accession #:  47111-97-6   ·   File #:  1-00183

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         March 4, 1997 Form 8-K                                 3      9K 
 2: EX-99       1/28/97 Press Release                                  4     17K 

EX-99   —   1/28/97 Press Release

EX-99
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                                    EXHIBIT 99
Hershey Foods NEWS                                                              
Corporate Communications                                                        
Hershey Foods Corporation                                                       
100 Crystal A Drive                                                             
Hershey, PA   17033                                                             

FOR IMMEDIATE RELEASE                                 CONTACT:                  
January 28, 1997                                      Natalie D. Bailey         
                                        717-534-7631
                                                    E-Mail:  pr@hersheys.com

                                              FINANCIAL CONTACT:
                                          James A. Edris
                                        717-534-7556

 HERSHEY FOODS ANNOUNCES
FOURTH QUARTER RESULTS

 RECORD SALES AND EARNINGS
 FROM OPERATIONS

HERSHEY,  PA --- Hershey Foods Corporation  today announced record  consolidated
net sales and earnings from operations for the fourth quarter ended December 31,
1996.                                                                           

Record net sales were $1,189,115,000 compared with $1,119,851,000 for the fourth
quarter of 1995. Net income was  $78,654,000,  or $.51 per share on a post-split
basis,  including a before- and after-tax  loss on disposal of certain  European
businesses of  $35,352,000,  or $.23 per share.  Excluding the loss on disposal,
net income for the  quarter  was  $114,006,000,  or $.74 per share,  compared to
$105,836,000, or $.68 per share, in 1995. Weighted average shares outstanding on
a post-split basis for the fourth quarter of 1996 were 153,368,000 compared with
154,669,000 for the fourth quarter of 1995.                                     

Record net sales for the year were  $3,989,308,000  compared with $3,690,667,000
in  1995.   Net  income  for  the  year  including  the  loss  on  disposal  was
$273,186,000, or $1.77 per share.                                               

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Excluding the impact of the loss on disposal,  net income was  $308,538,000,  or
$2.00 per  share,  compared  with  $281,919,000,  or $1.70 per  share,  in 1995.
Weighted average shares outstanding on a post-split basis for the full year 1996
were 153,995,000 compared with 165,687,000 for the full year 1995.              

"We had a good  finish to 1996,"  said  Kenneth  L.  Wolfe,  Chairman  and Chief
Executive  Officer.  "In the fourth  quarter,  Hershey  Chocolate  North America
achieved  solid  volume  growth on the  strength of our  successful  new product
introductions and fine seasonal performance. Hershey Chocolate North America was
the principal  contributor to growth in earnings from operations in the quarter,
although  Hershey  Pasta  and  Hershey  International  also  recorded  excellent
earnings  increases  versus  last year.  Lower net  interest  expense  and fewer
average shares  outstanding  also  contributed to per share net income growth in
the quarter.                                                                    

"Sales growth for the year was  attributable  primarily to volume growth related
to new  products  such as  Hershey's  Sweet  Escapes  reduced  fat  and  calorie
chocolate bar, Hershey's TasteTations hard candies,  Hershey's Pot of Gold boxed
chocolates  and  Hershey's  Cookies 'n Creme  candy bars,  as well as  excellent
seasonal  business,  the price increase,  and the acquisition of the Henry Heide
Inc. In addition,  Hershey Grocery and Hershey  International posted solid sales
gains  for the year.  These  gains  were  offset  somewhat  by the  disposal  of
businesses in Canada and Europe, and lower sales for Hershey Pasta Group.       

"Hershey Chocolate North America was the principal  contributor to income growth
for the year with  important  contributions  also made by  Hershey  Grocery  and
Hershey  International.  Net interest expense increased for the year as a result
of the  increased  level of  borrowings.  The  lower  number of  average  shares
outstanding for the year contributed to net earnings per share growth.          

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"We had an  excellent  year in  1996,  and our  business  enters  1997 on  solid
footing.  Newly acquired Leaf North America will require  considerable  time and
effort to integrate with our North  American  confectionery  business.  While we
initially  will  have  modest  earnings  dilution,   we  are  confident  we  can
significantly improve the operating performance of this business.  Meanwhile, we
will continue to introduce  exciting new products while  continuing to invest in
our core  businesses.  There  is a lot to be  accomplished  in 1997,  but we are
confident that Hershey's team is up to the task," Wolfe concluded.              

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                            Hershey Foods Corporation                                                                      
                  Summary of Consolidated Statements of Income                                                             
          for the periods ended December 31, 1996 and December 31, 1995                                                    
               (in thousands of dollars except per share amounts)                                                          

                                                                   Fourth Quarter                Twelve Months             
                                                                   --------------                -------------             
                                                                 1996              1995         1996              1995     
                                                                 ----              ----         ----              ----     
                                                                                                                           
Net Sales                                                    $1,189,115          $1,119,851   $3,989,308        $3,690,667 
                                                             ----------          ----------   ----------        ---------- 
Costs and Expenses:                                                                                                        
    Cost of Sales                                               668,569             626,707    2,302,089         2,126,274 
    Selling, Marketing and Administrative                       318,814             305,909    1,124,087         1,053,758 
                                                            -----------          -----------   ----------        ----------

    Total Costs and Expenses                                    987,383             932,616    3,426,176         3,180,032 
                                                            -----------          -----------   ----------        ----------
Loss on the Disposal of Businesses                               35,352                  --       35,352                -- 

Restructuring Credit                                                 --              (3,277)          --             (151) 
                                                            -----------          ----------    ----------        --------- 

Income Before Interest and Income Taxes                         166,380             190,512      527,780           510,786 
Interest Expense, net                                            11,404              14,416       48,043            44,833 
                                                           ------------          -----------  -----------        ----------
Income Before Income Taxes                                      154,976             176,096      479,737           465,953 
Provision for Income Taxes                                       76,322              70,260      206,551           184,034 
                                                           ------------          -----------  -----------        ----------

Net Income                                                   $   78,654          $  105,836   $  273,186        $  281,919 
                                                              ---------          ----------   ----------        ---------- 
Net Income Per Share                                         $      .51          $      .68   $     1.77        $     1.70 
                                                             ==========          ==========   ==========        ========== 

NOTE:     Income  Per  Share has been  computed  based on the  weighted  average
          number of shares of Common Stock and Class B Common Stock  outstanding
          during the period.  Average shares  outstanding for the fourth quarter
          and  twelve  months  of  1996  were   153,368,000   and   153,995,000,
          respectively,  and 154,669,000 and 165,687,000,  respectively, for the
          comparable  periods in 1995. All share and per share amounts have been
          restated  for the  Corporation's  two-for-one  stock  split  effective
September 13, 1996.                                         

                                                        [Enlarge/Download Table]


                           Consolidated Balance Sheets                                                       
                  as of December 31, 1996 and December 31, 1995                                              
                            (in thousands of dollars)                                                        

                                                                    Liabilities and                          
Assets                               1996         1995           Stockholders' Equity      1996        1995  
------                               ----         ----           --------------------      ----        ----  
                                                                                                             
Current Assets                   $  986,229   $  922,323     Current Liabilities       $  817,274  $  864,355
Property and Equipment, Net       1,601,895    1,436,009     Long-Term Debt               655,289     357,034
Intangibles Resulting from                                   Other Long-Term                                 
   Business Acquisitions            565,962      428,714         Liabilities              327,209     333,814
Other Assets                         30,710       43,577     Deferred Income Taxes        224,003     192,461
                                                             Stockholders' Equity       1,161,021   1,082,959
                                 ----------   ----------                                --------    -------- 
                                 $3,184,796   $2,830,623                               $3,184,796  $2,830,623
                                 ==========   ==========                               ==========  ==========

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
Filed on / For Period End:		3/4/97
		1/28/97		1
		12/31/96		1		4			10-K
		9/13/96		4
		12/31/95		4					10-K
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