Hershey income rise 11% but shares fall

22 October 2010 – Hershey has reported that its third-quarter net income rose 11% and has raised its 2010 profit outlook but its shares still fell as its market gains slowed.

Before the report, the stock had shot up 7% over the last month and had gained 43% for the year, making it one the best performers in the broader food group. However, the company says the timing of some of its shipments dampened third-quarter sales by about one percentage point. But those shipments were moved to early October, and fourth-quarter sales will be higher than expected, the company said. 

Hershey has seen steady results in the recession but faces growing competition across the globe from Mars and Kraft Foods as well as rising commodity costs.