By EMILY FREDRIX

Associated Press

NEW YORK (AP) -- J.M. Smucker Co.'s fourth-quarter net income rose about 28 percent as cash-strapped shoppers bought more of its brands like Jif peanut butter and its namesake jams and jellies, although they bought less of its Folgers coffee.

The Orrville, Ohio-based food maker on Thursday also issued an outlook for 2011 that topped analysts' expectations, sending shares up more than 3 percent in premarket trading.

Smucker was one the beneficiaries of the recession as shoppers ate out less often and bought more food to eat at home to save money. The company makes baking products such as Pillsbury flour and Crisco oils, as well as Hungry Jack pancake mixes, in addition to its jams, jellies and Folgers coffee. It bought Folgers for $3 billion in November 2008 from consumer products giant Procter & Gamble Co.

In the three-month period ending April 30, Smucker earned $120.6 million, or $1.01 a share. In the same period last year the company earned $94.3 million, or 80 cents a share.

Revenue rose less than 1 percent to $1.07 billion.

Excluding one-time items related to restructuring and other factors such as the sale of its potato business, the company earned $1.07.

Analysts expected Smucker to earn 80 cents a share on revenue of $1 billion.

Shares rose $2, or 3.5 percent, to $59.75 in premarket trading Thursday.

For the full year, net income rose 86 percent to $494.1 million or $4.15 a share, compared to $266 million or $3.11 a share.

Smucker said for fiscal 2011, it expects net income to range between $4.50 and $4.60 a share, excluding restructuring and merger costs of 55 to 60 cents a share. Net sales are expected to rise 3 percent from 2010, excluding acquisitions. According to Thomson Reuters, analysts expect the company to earn $4.42 a share next year on revenue of $4.75 billion.

In the fourth quarter, the company's retail coffee business revenue fell 1 percent to $417.7 million. This year marked the first full fiscal year the company has owned the Folgers brand. Dunkin Donuts brand coffee grew in by a double-digit percentage, continuing previous growth, and Millstone increased as well.

But Smucker said that did not offset a drop in the FOlgers brand, so overall coffee volume fell 4 percent. Smucker noted the drop was expected because of strong volume in last year's fourth quarter.

In the oils and baking division, which includes Crisco and Pillsbury flour, revenue fell 12 percent to $163.2 million

Revenue in the consumer market rose 5 percent to $270.4 million. Volume rose for Jif, Smucker's fruit spreads, Hungry Jack pancake mixes and syrups. When excluding the sale of the potato business, volume in the segment rose 8 percent.

For both those divisions, profit increased because costs for raw materials like soybean oil fell from the prior year.

Smucker's size nearly doubled after the Folger's acquisition and co-CEO Tim Smucker said Wednesday the company is now realizing the potential for the larger company. The company bought Jif peanut butter and Crisco cooking oil from P&G, based in Cincinnati, in a $1 billion stock deal in 2002.

Copyright 2010 The Associated Press.

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