Hershey: Loss of Profits and Trouble

There’s currently trouble in the air at Hershey, the leading sweets manufacturer in the States. Hershey is associated in our line of trade with the well-known, highly valued Hershey Park, which has been able to attract attention to itself from all over the world with some great new attractions in the past few years. The current trouble is rooted in a dispute over a loss of corporate profits between the executive board and the heirs whose interests are being represented by the Hershey trust. For the third quarter this year, profit losses were announced for the fourth time in a row. CEO Lenny has declared his resignation in conjunction with this downturn. Shares have dropped from 42 euros in late March to 29 euros downward. New rumours have emerged according to which the Hershey clan might just unroll the possibilities of a fusion or partial fusion with the British food and beverage corporation Cadbury, which it had discussed back in 2002. In such a constellation, this would give Hershey the chance to vigorously stimulate its lamed foreign operations. (eap)