For the quarter ended July 26, Hormel (HRL 37.50, +0.26, +0.69%) said net income rose to $77.2 million, or 57 cents a share, from $51.9 million, or 38 cents a share, a year earlier. Revenue for the quarter fell 6% to $1.6 billion. The company said the decline in sales stemmed from the decision to downsize its turkey production as well as the impact of tough economic conditions overall. Sales of microwave products were also down for the quarter, contributing to an 8% decline in volume for its grocery products division. Operating profit for the division rose 11%, however. Grocery products accounted for 13% of Hormel's net third-quarter sales. HRL 37.50, +0.26, +0.69% SPX 1,004, +7.71, +0.77% 20%0%-20%-40%-60% 09OMMJ Meanwhile, earnings from the sale of refrigerated foods jumped 60% from the year-ago quarter. Refrigerated foods such as beef, ham and chicken entrees and lunchmeats, now account for 54% of Hormel's net sales. But volume was down 1% and dollar sales for the division were off 5% compared with a year ago. Analysts polled by FactSet Research had expected the company to earn 52 cents a share on $1.68 billion in sales. For the full year, Hormel stood behind its earlier earnings outlook of $2.36 to $2.42 a share. Analysts, on average, are looking for $2.40 a share from the Austin, Minn.-based food company. Shares of Hormel were up 1.6% in early action at $37.83, bringing the stock's overall gains for the past 12 months to 7%.

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