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Hormel high-five: Record profits, record profit-sharing - Bring Me The News

Hormel high-five: Record profits, record profit-sharing

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There is joy in Spamtown.

The Austin Daily Herald reports employees at Hormel Foods enjoyed a longstanding tradition as all of the 1,800 Austin plant workers who have worked for the company more than a year received a profit sharing bonus. The amount, which totaled a record $17 million this year, gives about 2.4 weeks’ pay to employees. Last year, Hormel distributed $16.9 million in profit sharing, which was also a record.

Hormel doesn’t guarantee an annual bonus, but the Austin-based Fortune 500 company it has given one to its workforce for 75 straight years. Jay C. Hormel, former Hormel CEO and son of its founder, started the profit sharing program in 1938.

The Rochester Post-Bulletin reported that the checks were distributed to workers at shift change Thursday morning.

“Our record results are evidence of our many hard-working employees and their dedication to quality,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer at Hormel Foods. “It is with great pride that we continue to share our company’s success as we have for so many years.”

On Wednesday, Hormel reported yesterday a record year, with $526.2 million in profit, a 5 percent increase over last year, and $8.75 billion in total sales, a 6 percent increase from 2012.

Kaway Goy, who worked at the Austin plant for six years, said he looks forward to the annual bonus check so he can buy gifts for his family.

“It motivates us,” he said.

The company produces familiar brands such as Spam, Hormel chili, Jennie-O turkey and Dinty Moore stew.

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