Hormel Foods cuts forecast for annual underlying earnings due to disappointing profits in fiscal third quarter. Operating income now projected at $982m to $996m, down from $1.12bn to $1.19bn. Diluted EPS forecast lowered to $1.49 to $1.59 from previous $1.49 to $1.59 projection. CEO mentions commodity input costs as main reason for shortfall.

Company initiates Transform and Modernise program to reduce costs and improve production efficiency. Spending on initiative contributes to decrease in annual operating income forecast. 90 projects underway during third quarter, with plans to lay off 130 staff in Georgia facility.

Third-quarter net sales up 4.6% to $3.03bn, with organic sales growth of 6%. Net sales rise in all three divisions but foodservice volumes decline. Operating income increases 1.3% to $239.7m, while net earnings grow by 4% to $183.7m.

Interim CEO confident in portfolio’s ability to deliver top-line results despite consumer challenges. Jim Snee, former CEO, announced retirement in January after eight years at helm. John Ghingo promoted to president role, overseeing consumer brands. Ettinger named interim CEO in June, will take over a year to find permanent replacement.

Read more at Yahoo Finance: Hormel Foods cuts forecast for annual earnings