Hormel Doles Out $16.5M in Profit-Sharing Program
Hormel Foods Corporation on Wednesday said it has distributed a total of $16.5 million to employees through its profit-sharing program.
The profit-sharing payout marks the 73rd consecutive year of the program, which has become a Thanksgiving Eve tradition for the Austin-based company.
Julie H. Craven, Hormel's vice president of corporate communications, said in a Tuesday e-mail that the profit-sharing program benefited eligible hourly and salaried workers, and employees who worked for the company for the full fiscal year that ended October 30 were eligible to receive the payouts. The company employs about 19,500 workers, Craven said.
“We are honored to again recognize our employees for their contributions to a record year in net sales and earnings,” Jeffrey Ettinger, chairman, president, and CEO, said in a statement. “It is gratifying to be able to provide this benefit to our hard-working employees who are committed to delivering great-tasting products to consumers around the world.”
The profit-sharing announcement came the day after Hormel reported fourth-quarter earnings of $117.3 million, down about 3 percent from the same period a year earlier. Revenue, meanwhile, rose 2 percent to $2.1 billion. For the full fiscal year, earnings increased 20 percent to $474.2 million, while sales climbed 9 percent to $7.9 billion. Hormel is one of Minnesota's 15-largest public companies.
Meanwhile, Warroad-based Marvin Windows and Doors-which has traditionally given bonuses to its workers-isn't giving employees a profit-sharing bonus this year due to a slumping housing market, according to a report by the Associated Press. It's reportedly the third year in a row-but only the sixth time in 55 years-that the family-owned company hasn't given out bonuses.
But the company's decision to skip bonuses aligns with a commitment to maintain its work force by averting layoffs. A September report by The New York Times pointed out that Marvin has bucked national trends during the economic downturn by not cutting staff. “Unlike so many other companies, Marvin Windows has neither laid off workers nor reduced health insurance benefits,” The New York Times reported. “And, its executives vow, it won't.”