WASHINGTON, D.C. – Listen up girls and boysenberries, we’ve got some sweet tax reform news for you: J.M. Smucker Co. is spreading the savings they are seeing due to the Tax Cuts and Jobs Act to nearly 5,000 employees, announcing $1,000 bonuses for their workers. Additionally, the company will make a ‘berry’ large contribution to employees’ pensions, adding an additional $20 million to the plan.
Smucker’s joins the nearly 400 other companies and counting that are announcing pay raises, over $3 billion in bonuses, better benefits, and more hiring as a result of the Tax Cuts and Jobs Act, proving that tax reform and bigger paychecks go together like PB&J.
Democrats now find themselves in a sticky situation with their jarring rhetoric on the bill, as now a majority of Americans approve of this bill and small businesses are expressing record levels of confidence due to tax reform.
Perhaps that’s why they still have sour grapes, and are refusing to answer the question of whether they are in favor of repealing this bill that has increased the paychecks of 9 out of 10 Americans.
To see Smucker’s full announcement, click here or see below.
To see the growing number of companies increasing wages, investments, jobs, and bonuses because of the Tax Cuts and Jobs Act, click here.
Akron Beacon Journal: J.M. Smucker giving $1,000 bonuses to thousands of employees
February 16, 2018
J.M. Smucker Co. is pouring sugar on thousands of employees in the form of $1,000 bonuses.
The Orrville food company announced the employee bonuses as part of its third quarter earnings report released Friday morning.
Corporate earnings were significantly higher than a year ago in large part because of federal tax reform that lowered corporate tax rates. Smucker also increased its earnings outlook for the year.
The company said it is giving $1,000 one-time bonuses to nearly 5,000 employees, will make $1 million in charitable contributions, and will contribute an additional $20 million to its employee pension plan because of federal tax reform.
Smucker reported net income of $831.3 million, or $7.32 per share, on revenue of $1.9 billion for the quarter ending Jan. 31. The bulk of the net income increase was due to a nonrecurring benefit from recently enacted federal tax reform, the company said.
The company had adjusted earnings of $2.50 a share for the quarter, up 25 percent from a year ago.
A year ago, Smucker reported net income of $134.6 million, or $1.16 a share, on revenue of $1.87 billion.
Third quarter revenue and profit were boosted by strong coffee and pet food sales, while U.S. food sales declined.
The company announced results before the stock market opened.
Earnings and revenue beat analyst estimates.
Shares rose Friday afternoon after dipping in the day, closing up $1.81, or 1.5 percent, at $124.02.
“We had a strong third quarter, with sales growth for key brands in every business and strong earnings per share growth fueled by the benefits of U.S. income tax reform and ongoing cost discipline,” Mark Smucker, chief executive officer, said in a statement.
“These results reflect our commitment to delivering top and bottom line growth and supporting our portfolio of iconic and emerging brands. In addition, the benefits of income tax reform provide incremental fuel to invest in our growth initiatives and support our employees and communities as well as opportunities to increase cash returned to shareholders.”
Third quarter coffee sales increased $12.9 million to $550.5 million compared to a year ago.
U.S. food sales fell $5.7 million to $511.6 million compared to a year ago.
Pet food sales in the United States rose by $11 million to $561.9 million compared to the third quarter of 2017.
International sales totaled $279.3 million, up $6.3 million from a year ago.
The company said it now expects to have adjusted earnings of $8.20 to $8.30 a share for the full 2018 fiscal year compared to previous estimates of $7.75 to $7.90 a share.
Full year revenue is expected to be flat to down slightly compared to fiscal 2017.
Smucker food, coffee and pet food brands include Smucker’s, Folger’s, Jif, Crisco, Dunkin’ Donuts, Cafe Buselo, Pillsbury, Milk-Bone, Meow Mix, 9Lives and others.