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Running head: SMUCKER 'S - THE J.M. SMUCKER COMPANY 1 The J.M. Smucker Company Christine Silva-Netto John F. Kennedy University Managerial Economics BUS5052 Edward Torres March 09, 2012 SMUCKER 'S - THE J.M. SMUCKER COMPANY SMUCKER 'S The J.M. Smucker Company History Smuckers was founded in 1897 by Jerome Monroe Smuckers who sold his first product, apple butter, from the back of a horse-drawn wagon. J.M. Smucker Company was incorporated in 1921 and has been a successful family run business for four generations. J.M. Smucker Company 's headquarters is located in Orrville, Ohio and has been there since 1897. The Company has 17 manufacturing locations within North America and four manufacturing locations in Canada. Their sales…show more content…
SMUCKER 'S - THE J.M. SMUCKER COMPANY Exhibit: 1.1: SJM: Product Sales 4 Source: The J.M. Smucker 2011 & 2010 Annual Reports J.M. Smucker Company Shares were listed on the New York Stock exchange in 1965. The ticker symbol is SJM. In 2011, J.M. Smucker Company 's gross profit (excluding special project costs) was $1,852.6 million which was a $11.8 million increase compared to 2010. Their net sales for 2011 was $4,825.7, an increase in five percent, compared to 2010 (The J.M. Smucker Company, 2011, p. 21) (Exhibit 1.2), and compared to third quarter of 2011, their third quarter of 2012 net sales increased 12 percent, driven primarily by the impact of prior pricing actions and acquisitions ("J.M. Smucker Co. Announces Fiscal 2012 Quarter Results," 2012). The increase in net sales offset the impact of overall higher raw material and freight costs and $50.2 million of incremental special project costs including in cost of products sold, consisting primarily of accelerated depreciation (The J.M. Smucker Company, 2011) (Exhibit 1.3). As of SMUCKER 'S - THE J.M. SMUCKER COMPANY 5 February 2012, J.M. Smucker Company 's gross margins in the third quarter fell to 32.6 percent, from 37.4 percent, a year ago, as a result of higher cost of green coffee, edible oils, peanuts and flour. The Company 's third quarter profit fell to $116.8 million, or $1.03 a share, from $132 million, or $1.11 a share, a year ago (Dalal & Nair, 2012)
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