J.M. Smucker Co. Earnings Call Nuggets: Consumer Analysis and U.S. Retail Volume
J.M. Smucker Co. (NYSE:SJM) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Eric Katzman – Deutsche Bank: I guess, Richard, maybe or Vince, you could comment, just more broadly on kind of the consumer and the environment, it seems like a lot of food companies focused in the U.S. were getting a little bit more optimistic as the spring unfolded and then it seems like some of the retailers out there along with some of your competitors have kind of noticed a bit more I guess, weakness sequentially as kind of the years unfolded. Maybe you could answer that and I’ll have a follow-up just on the Company?
Richard K. Smucker – CEO: Yeah Eric, this is Richard. That’s a good question. The way we look at it, I think we’ve mentioned this before, we kind of put the consumers into three buckets. The top one-third, the middle one-third and the bottom one-third and I think we still see that the top one-third’s doing fine, the middle one-third is doing fine, although sometimes they don’t know it, don’t feel it, but the bottom one-third of the consumer is still very challenged and we’ve seen that, the way we’ve responded to that is to make sure we have the right pricing in each level to provide them with the right products and pricing for each group, but I guess, consumer confidence is still up, as far as you look at the Michigan consumer confidence trends, but I have to admit, on some of our retailers were seeing that lower one-third being challenged and we think that’s going to continue throughout the year, but I think we’re well positioned because of the product lines that we offer and the product categories that we’re in to do pretty well in this environment.
Vincent C. Byrd – President and COO: I would only support exactly what you said and I think that’s probably what’s leading little bit to our cautious optimism about the back half of the year. We feel we are in a very good place as we head into the holiday bake period, but you can’t ignore the results of some of our key customers and some of our peers within the consumer industry. So certainly we believe we are in good place as Richard mentioned but you just can’t ignore the – some of the trends that we are seeing…