Wrigley Earnings Rise on Weak Dollar
{{#rendered}} {{/rendered}}Wm. Wrigley Jr Co. (WWY), the world's largest chewing gum maker, Tuesday said quarterly net income rose 11 percent, helped by a weak dollar that boosted overseas sales and a recent acquisition.
Chicago-based Wrigley reported a second-quarter net profit of $139 million, or 62 cents per share, compared with $125.9 million, or 56 cents per share, a year earlier.
The favorable currency translation accounted for 3 cents per share, Wrigley said.
{{#rendered}} {{/rendered}}Wall Street analysts had expected the company to report earnings of between 60 cents and 64 cents per share with an average view of 61 cents per share, according to Reuters Estimates.
Sales rose 21 percent to $958 million, boosted by Wrigley's $260 million acquisition of the Joyco gum and candy business from Spanish food conglomerate Agrolimen (search) earlier this year.
The deal added Boomer bubble gum and Pim Pom lollipops to Wrigley's product line, which also includes Juicy Fruit and Doublemint chewing gums as well as Eclipse breath mints (search).
{{#rendered}} {{/rendered}}The Joyco transaction also put pressure on the company's profit margins, which fell during the period. Wrigley, however, said higher costs for its new products were responsible for most of the decline.
Wrigley shares were up 4 cents at $59.93 Tuesday on the New York Stock Exchange (search).