The J. M. Smucker Company reported unaudited consolidated earnings results for the second quarter and six months ended October 31, 2017. For the quarter, the company reported net sales of $1,923.6 million against $1,913.9 million a year ago. Operating income was $330.7 million against $303.3 million a year ago. Income before income taxes was $291.8 million against $265.5 million a year ago. Net income was $194.6 million or $1.70 per share basic and diluted against $177.3 million or $1.52 per share basic and diluted a year ago, primarily due to reduction in special project costs in the current year. Net cash provided by operating activities was $130.4 million against $136.4 million a year ago. Additions to property, plant and equipment was $68.2 million against $33.8 million a year ago. Adjusted operating income was $383.2 million against $396.2 million a year ago. Adjusted income per share was $2.02 per share against $2.05 per share a year ago. Non GAAP adjusted operating income $383.2 million compared to $396.2 million a year ago. Non GAAP adjusted income before tax was $344.3 million compared to $358.4 million a year ago. Non GAAP adjusted income was $229.5 million or $2.02 per share compared to $239.2 million or $2.05 per share a year ago. Non GAAP adjusted EBITDA was $435.6 million compared to $411.3 million a year ago. Non GAAP net cash provided by operating activities was $130.3 million compared to $136.4 million a year ago. Non GAAP additions to property, plant, and equipment were $60.4 million compared to $33.8 million a year ago. Non-GAAP free cash flow was $69.9 million compared to $102.6 million a year ago.

For the six months, the company reported net sales of $3,672.5 million against $3,729.7 million a year ago. Operating income was $564.5 million against $597.1 million a year ago. Income before income taxes was $480.8 million against $518.9 million a year ago. Net income was $321.4 million or $2.83 per share basic and diluted against $347.3 million or $2.98 per share basic and diluted a year ago. Net cash provided by operating activities was $434.6 million against $375.3 million a year ago. Additions to property, plant and equipment was $130.0 million against $84.0 million a year ago. Adjusted operating income was $760.2 million against $750.5 million a year ago. Non GAAP adjusted operating income $683.7 million compared to $760.2 million a year ago. Non GAAP adjusted income before tax was $600.6 million compared to $682.0 million a year ago. Non GAAP adjusted income was $401.1 million or $3.53 per share compared to $456.4 million or $3.92 per share a year ago. Non GAAP adjusted EBITDA was $772.6 million compared to $811.9 million a year ago. Non GAAP net cash provided by operating activities was $434.6 million compared to $375.3 million a year ago. Non GAAP additions to property, plant, and equipment were $130.0 million compared to $84.0 million a year ago. Non-GAAP free cash flow was $304.6 million compared to $291.3 million a year ago.

For the full year fiscal 2018, the company expects net income per common share of range between to $6.19 to $6.34 per share. Adjusted earnings per share of range between $7.75 to $7.90 per share. Net cash provided by operating activities of $1,085 million. The company continues to project full year free cash flow of $775 million. Capital expenditures was $310 million. Effective tax rate was 32.5% to 33.0% against previous guidance of 32.5% to 33.0%. The company now project gross margin to increase approximately 50 basis points over 2017, reflecting anticipated cost savings and lower green coffee costs in the back half of the year. The reduction from previous guidance of a 50 to 75 basis point improvement reflects higher-than-anticipated freight cost driven by industry-wide headwinds, which will mostly impact the last 6 months of 2018 and then continue into next fiscal year. The company now forecasts net sales to be in the range of flat to down slightly compared to the prior year. This change in outlook primarily reflects the higher-than-anticipated sales in the second quarter.