HERSHEY, PA -- Hershey Co.'s second-quarter net income fell 35% as a result of charges for restructuring and value write down for a joint venture in India. But increased advertising during the quarter helped to boost sales, resulting in higher-than-expected revenues.
Second-quarter net income fell to $46.7 million from $71.3 million a year earlier. Revenue grew 5% to $1.23 billion. Retail sales for Hershey's chocolate bars, Reese's, Bliss, Twizzlers and Kit Kat reportedly grew in the mid-single digits.
The company increased its advertising spending by 50% in the second quarter, partly to promote launches of new products, including Hershey's Special Dark, Almond Joy and York Pieces. Officials said they plan to increase advertising levels by 45% to 50% for the year ahead.
Hershey reaffirmed its 2010 forecast for profit per share. It reduced its forecast for net profit, in part because of an impairment charge from the Godrej Hershey joint venture in India formed in 2007, which has grown more slowly than expected.
The company now expects adjusted earnings of $2.47 to $2.52 a share for 2010, with net income of $2.04 to $2.12. Its net sales are expected to rise about 7%. Last month, Hershey forecast 2010 net income of $2.31 to $2.38 a share on a net sales gain of 6% to 7%.