The Hershey Company announced consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported net sales of $1,751,035,000 compared with $1,567,145,000 for the same period a year ago. Income before interest and income tax was $252,617,000 compared with $229,009,000 for the same period a year ago. Income before income tax was $229,951,000 compared with $207,695,000 for the same period a year ago. Net income was $149,879,000 or $0.66 per diluted share compared with $142,133,000 or $0.62 per diluted share for the same period a year ago. Total company capital additions, including software, were $64 million in fourth quarter. These amounts included Project Next Century capital expenditures of $7 million in the fourth quarter.

For the full year, the company reported net sales of $6,644,252,000 compared with $6,080,788,000 for the same period a year ago. Income before interest and income tax was $1,111,148,000 compared with $1,055,028,000 for the same period a year ago. Income before income tax was $1,015,579,000 compared with $962,845,000 for the same period a year ago. Net income was $660,931,000 or $2.89 per diluted share compared with $628,962,000 or $2.74 per diluted share for the same period a year ago. Total company capital additions, including software, were $278 million for the full year. These amounts included Project Next Century capital expenditures of $75 million in the full year.

The company provided earnings guidance for the first quarter of 2013 and revised earnings guidance for 2013. Compared to the first quarter of 2012, the first quarter of 2013 net sales will be impacted by a shorter Easter season in the U.S., although it will benefit from continued improvements in U.S. core brand volume trends, the launch of Brookside into FDMx channels and the international innovation. As a result, the company expects first quarter 2013 net sales to be within 5% to 7% long-term target. The company expects solid gross margin expansion throughout the year to drive EBIT dollar and adjusted EPS diluted growth across 4 quarters in 2013.

For the year, net sales expected to increase 5% to 7%, driven primarily by volume. Reported earnings per share-diluted expected to be $3.47 to $3.56. Adjusted earnings per share-diluted expected to increase 10% to 12% and be in the $3.56 to $3.63 range, greater than the previous estimate of an 8% to 10% increase. In 2013, the company expects interest expense to be in the $85 million to $95 million range. The company expects the tax rate to be about the same as the full year 2012 rate although quarterly rates should be less volatile than they were last year and closer to the full year rate. The company expects total CapEx to be about $300 million, including capital related to Project Next Century of about $15 million to $20 million. The company is forecasting total depreciation and amortization of about $200 million to $210 million. The company expects 2013 adjusted gross margin expansion of 180 to 200 basis points. Given all of the moving parts between last year and this year, its expectation is that first half EBIT margin will be pressured and adjusted EPS diluted growth will be greater in the second half of the year.