SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 28, 1999
-------------------------------
HERSHEY FOODS CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-183 23-0691590
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
100 Crystal A Drive, Hershey, Pennsylvania 17033
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (717) 534-6799
-----------------------------
Page 1 of 3
Exhibit Index - Page 3
1
INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events
-------------
On December 28, 1999, Hershey Foods Corporation (the "Corporation")
announced that its sales in December 1999 will be lower than expected, and that
its earnings per share for the fiscal year ending December 31, 1999,
might be below market expectations. Earnings per share for the year could be
$.10 per share below previous expectations of $2.16 to $2.20 per share, as
announced on October 25, 1999. The press release dated December 28, 1999,
announcing the Corporation's expectations regarding fiscal year earnings, is
incorporated herein by reference, and a copy is filed herewith as Exhibit 99.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: January 4, 2000
HERSHEY FOODS CORPORATION
By /s/ William F. Christ
-----------------------
William F. Christ
Senior Vice President,
Chief Financial Officer and Treasurer
Page 2 of 3
Exhibit Index - Page 3
2
Exhibit Index
Exhibit No. Description
99 Press Release dated December 28, 1999
Page 3 of 3
Exhibit Index - Page 3
3
Exhibit 99
[LOGO OF HERSHEY FOODS APPEARS HERE] HERSHEY FOODS NEWS
Corporate Communications Hershey Foods Corporation
100 Crystal A Drive -
Hershey, PA 17033
E-mail: pr@hersheys.com
http://www.hersheys.com
=====================================================================
FOR IMMEDIATE RELEASE CONTACT:
December 28, 1999 John C. Long
717-534-7631
FINANCIAL CONTACT:
James A. Edris
717-534-7556
Hershey Foods Corporation Earnings Update
Hershey Foods Corporation announced today that the strong customer order demand
it was experiencing at the time of its October 25, 1999, announcement of third
quarter results was not sustained throughout the fourth quarter. The
Corporation's growth at retail outpaced the category for the Halloween season
(as measured by IRI data through the first week of November) despite the
shipping and distribution difficulties referred to in the October 25
announcement. Through the balance of November, its performance was in line with
its expectations for the fourth quarter. Sales in December, however, will be
lower than expected. This slowdown in customer order demand appears to be in
part a consequence of the earlier customer service and order fulfillment issues.
Hershey continues to make progress implementing improvements to its new customer
service, warehousing and order fulfillment business systems and processes, and
customer service performance has improved significantly.
However, 1999 earnings from continuing operations could be below the estimate in
the October 25 announcement of $2.16 to $2.20 per share by an amount of up to
approximately $.10 per share as a result of the lower than expected sales in
December and increased costs associated with these issues. The Corporation does
not expect to comment further on 1999 earnings until final results can be
announced, which it expects will be on January 31, 2000.
Safe Harbor Statement:
- ----------------------
This release contains statements that are forward-looking. These statements are
made based upon current expectations that are subject to risk and uncertainty.
Actual results might differ materially from those contained in the
forward-looking statements, because of factors such as changes in the
confectionery and grocery business environment, including actions of competitors
and changes in consumer preferences; changes in governmental laws and
regulations, including income taxes; demand for new and existing products; and
raw material pricing, as discussed in the Corporation's Annual Report on Form
10-K for 1998, as well as the Corporation's ability to remedy the problems and
avoid the increased costs encountered since implementing changes to the customer
service, warehousing, and order fulfillment processes and systems in July 1999;
the ability to restore customer service to historical levels; the effects
service levels and other factors have on future customer demand; and the ability
to complete construction and commence operations of new warehousing facilities
on schedule.
# # #