Ohio's Smucker company 1Q net income rises

PORTLAND, Ore. (AP) — Price hikes helped J.M. Smucker Co.'s first-quarter profit rise 8 percent, but the company is still struggling to balance its higher costs against what it charges customers.

Most major food and beverage companies have raised their prices in the past two years to offset soaring costs for ingredients, packaging and fuel.

J.M. Smucker's earnings report today showed that those moves can come at a cost. And its shares fell more than 7 percent during a broader market rout.

Its revenue rose 14 percent to $1.19 billion but fell short of analysts' average forecast for $1.26 billion, and its sales volume dropped as shoppers resisted higher prices.

The company said its net income for the quarter rose to $111.5 million, or 98 cents per share, from $102.9 million, or 86 cents per share last year. Excluding one-time items, it earned $1.12 per share.

That beat analyst expectations of $1.08 per share, according to FactSet.

The company, which is based in Orville, Ohio, and makes Folgers, Dunkin' Donuts and Millstone coffee, Jif peanut butter and its namesake jams, has raised prices on a number of items recently but most notably on coffee.