The Hershey Company (NYSE:HSY)

Despite the challenging economic environment, we have maintained strong momentum. As we enter the third quarter, we are well-positioned to deliver on our financial objectives. Brand-building initiatives are having the desired effect and have helped to mitigate volume declines due to price elasticity. We expect consumers to see markedly higher promoted price points in the upcoming Halloween and Holiday seasons, which represent approximately one-third of our U.S. revenues in the second half of the year. Additionally, in the fourth quarter we begin to lap the August 2008 every day price increase. We intend to make the necessary consumer investments to ensure that the category continues to perform well in the second half of the year and are closely monitoring consumer and competitor response to our pricing models. Therefore, we are planning additional increases in advertising for the full year and expect advertising expense to increase 40 to 45 percent in 2009. This investment will benefit the business in both the near term and next year. As a result, we expect full year net sales growth to be within our 3 to 5 percent long-term objective.

Considering our strong first-half performance, a good start to the third quarter, solid seasonal programming and, based on year-to-date price/volume elasticity trends, we now expect the increase in adjusted earnings per share-diluted for the full year to be slightly above our long-term objective of 6 to 8 percent.

Source: Business Wire (July 23, 2009)

Her has reaffirmed its previously issued guidance.

Source: Business Wire (April 23, 2009)

Guidance Report:

"For 2009, we expect net sales growth of 2-3 percent as our pricing actions, as well as core brand sales growth, will be partially offset by lower volumes and the impact of unfavorable foreign currency exchange rates. As we've stated since last June, 2009 earnings per share-diluted from operations is expected to increase, however, due to the unprecedented commodity and pension cost increases, higher levels of core brand investment spending and current macroeconomic conditions, we expect growth to be at a rate below our long-term objective of 6-8 percent," West concluded.

Source: PR Newswire (January 27, 2009)