emental sales from the introduction of new confectionery products, increased international exports and lower product returns, discounts, and allowances. In 2000, certain international distributor allowances were netted against sales instead of being reported in selling, marketing and administrative expenses as in 1999 and 1998. These distributor allowances amounted to $18.3 million and $17.8 million in 1999 and 1998, respectively. Net sales in 1999 included $29.3 million related to the Corporation’s pasta business, which no longer exists. Business DescriptionFrom a business standpoint, Hershey Foods Corporation has put up some impressive numbers, in the past few financial quarters. For the fiscal year ended 12/00, revenues rose 6% to $4.22B. Net income decreased 27% to $334.5M, however, revenues benefited from an increase in sales in the confectionery segment due to a strong Christmas season which followed an excellent Halloween season. Also their net income was offset by the absence of a $243.8M gain from the sale of business. In January 1999, the Hershey Foods Corporation had finalized the sale of its United States pasta business to New World Pasta, LLC, leaving the Hershey Food Corporation to solely concentrate on their well-established confectionary business. Taking a look at the Sales, Marketing, and Administrative end of the corporation , these expenses increased $69.3 million, or 7%, from 1999 to 2000, primarily reflecting increased marketing expenditures for core confectionery brands, international exports and the introduction of new products. Also, the net interest expense for 2000 was $1.7 million above the prior year, primarily as a result of higher short-term interest expense related to increased average short-term borrowings and borrowing rates, and lower capitalized interest. Despite some minor setbacks, the overall Financial condition of Hershey Foods remained fairly strong in 2000. Competitive PositionIn No...
