|The J. M. Smucker Company Announces Sale of Brazilian Operations|
ORRVILLE, Ohio, Oct. 6 /PRNewswire-FirstCall/ -- In support of its ongoing strategic focus on North America, The J. M. Smucker Company (NYSE: SJM) today announced the sale of its Brazilian operations, Smucker do Brasil Ltda., to Cargill, Incorporated, a privately owned international provider of food, agricultural, and risk management products and services.
The sale will generate net cash proceeds of approximately $8 million and result in a pre-tax loss of approximately $5.5 million, or $0.06 per share, which will be recorded by the Company as part of its second quarter results. The Brazilian operations contributed approximately $11 million in sales to fiscal year 2004 results while operating results were not material. Historical results have been included in the international business area of the Company's special markets segment. The results of Smucker do Brasil, including the loss on the sale of the business, will be accounted for as a discontinued operation, and all prior periods will be restated.
About The J. M. Smucker Company
The J. M. Smucker Company ( http://www.smuckers.com ) was founded in 1897 when the Company's namesake and founder sold his first product - apple butter - from the back of a horse-drawn wagon. Today, over a century later, the Company is the market leader in fruit spreads, peanut butter, shortening and oils, ice cream toppings, and health and natural foods beverages in North America under such icon brands as Smucker's(R), Jif(R), and Crisco(R). In June 2004, the Company expanded its family of products to include such brands as Pillsbury(R) baking mixes and ready-to-spread frostings; Hungry Jack(R) pancake mixes, syrups and potato side dishes; and Martha White(R) baking mixes and ingredients in the U.S., along with Robin Hood(R) flour and baking mixes and Bick's(R) pickles and condiments in Canada. For over 107 years, The J. M. Smucker Company has been headquartered in Orrville, Ohio, and has been family run for four generations. The J. M. Smucker Company was recognized as the top company in FORTUNE Magazine's 2003 annual survey of The 100 Best Companies to Work For and has ranked consistently in the top 25 companies each year since FORTUNE began the list in 1998. The J. M. Smucker Company has over 4,500 employees worldwide and distributes products in more than 45 countries.
The J. M. Smucker Company Forward-Looking Language
This press release contains forward-looking statements, including statements regarding estimates of future earnings and cash flows, which are subject to risks and uncertainties that could cause actual results to differ materially. Uncertainties that could affect actual results include, but are not limited to, additional costs associated with the transaction and other factors affecting share prices and capital markets generally. Other risks and uncertainties that may materially affect the Company are detailed from time to time in the respective reports filed by the Company with the Securities and Exchange Commission, including Forms 10-Q, 10-K, and 8-K.
SOURCE J. M. Smucker Company