U.S. food giant, Sara Lee, posted a full-year earnings forecast that missed some analysts’ estimates after sales declined 9.8 percent last quarter.
By Jennifer Denby
Shares of the company, which makes frozen cakes and Jimmy Dean sausages, also fell as sales were affected by the struggling European economy.
On the up side, the Chicago-based group benefited from price increases in the U.S. and consumers eating more at home. However, competition from private-label brands in Europe, that are lowering prices to tempt price-conscious consumers, affected sales.
“Consumers are definitely reining in their spending there,” Morningstar analyst, Erin Swanson commented. “Private label is extremely intense there.”
The company reported its loss narrowed to $14 million in the fourth quarter from $672 million a year earlier.