Sara Lee's Strong Sales Growth Continues in Third Quarter of Fiscal 2008

Business Wire,  May 6, 2008  

Tags: Sara Lee Corp.

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1 The amounts shown for diluted EPS from continuing operations as reported, net sales, operating margin GAAP and interest expense, net in the Fiscal 2008 Guidance and Fiscal 2007 Actual columns have been restated to exclude the Mexico meats business because it is a discontinued operation.

2 Excludes a tax benefit of $.21 per share reported in the first quarter of fiscal 2007.

3 Fiscal 2007 adjusted EPS of $.74 per share included a one-time tax benefit of $.21 per share that was reported in significant items in the first quarter of fiscal 2007.

4 Impact of adjustments to operating income used to compute adjusted operating margin. The dollar amounts are $49 million for the significant items, net in the first nine months of fiscal 2008 and $417 million for the significant items, net in fiscal 2007; $130 million for the contingent tobacco sale proceeds in fiscal 2008 and $120 million for the contingent tobacco sale proceeds in fiscal 2007.

Form 10-Q and Webcast

Sara Lee Corporation filed a Form 10-Q for the third quarter of fiscal 2008 with the Securities and Exchange Commission this morning. The Form 10-Q can be accessed in the Investor Relations section (Financial/SEC information page) on www.saralee.com. Please note that Sara Lee no longer includes the consolidated balance sheets, statements of income and statements of cash flows in this release as they are contained in the Form 10-Q. Management's review of third quarter results will be broadcast live via the Internet today at 9 a.m. CDT. The live webcast can be accessed in the Investor Relations section on www.saralee.com and is anticipated to conclude by 10 a.m. CDT. For people who are unable to listen to the webcast live, a re-run will be available on the website two hours following the completion of the webcast until Thursday, Nov. 6, 2008.

Forward-Looking Statements

This release contains forward-looking statements regarding Sara Lee's business prospects, costs and operating results, including statements contained under the heading "Guidance." In addition, from time to time, in oral statements and written reports, the corporation discusses its expectations regarding the corporation's future performance by making forward-looking statements preceded by terms such as "expects," "likely" or "believes." These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events.

Forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Consequently, the corporation wishes to caution readers not to place undue reliance on any forward-looking statements. Among the factors that could cause Sara Lee's actual results to differ from such forward-looking statements are factors relating to:

* Sara Lee's relationship with its customers, such as (i) a significant change in Sara Lee's business with any of its major customers, such as Wal-Mart, its largest customer, including changes in the level of inventory these customers maintain; and (ii) credit and other business risks associated with customers operating in a highly competitive retail environment;