Sara Lee F2Q09 (Qtr End 12/27/08) Earnings Call Transcript

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2009-02-04 11:11:15.0

Tags: J.P. Morgan Chase & Co., Call Transcript, Earnings, Sara Lee Corp., Investment, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. We will now begin the question-and-answer session. (Operator Instructions). Our first question comes from Terry Bivens with J.P. Morgan. Please go ahead.

Terry Bivens - J.P. Morgan

Good morning everyone.

Aaron Hoffman

Good morning.

Brenda Barnes

Hi Terry.

L.M. (Theo) de Kool

Hey Terry.

Terry Bivens - J.P. Morgan

I think the last time we looked at it, you had a under funded pension to the tune of about $300 million. Does the new guidance include any contribution in fiscal '09 to the pension?

L.M. (Theo) de Kool

Yes, we actually have increased our contributions in cash our guidance with 55 million to 240 million and exactly one of the reasons why we have taken the guidance on the cash flow is slightly down.

Terry Bivens - J.P. Morgan

Okay. Second question; if you look at the decline in the MAP spending, I guess 18% in the quarter, 10% for the first half. It's been a long time since I have seen numbers like that. Where do you ... why is that? And, second of all, how would you imagine that finishing the year?

Brenda Barnes

Yes. I would say, certainly in North America there has been a shift in timing, overlapping more investment in the first half in 2008 and this year there is more investment in the back half of 2009. So, over the course of the year, I think you'll see it relatively flat versus a year ago.

And then we've talked about before every time that according to when our innovations are rolling out and launching those new products. Internationally, there has been, with the economic conditions, there is a shift in really what the trade is looking at and really asking for a lot of extra spending on the MAP side, probably is in the most effective tool right now.

So we are translating more of the investment we have there in lines that wouldn't show up this math. So how do we get more of ... some every day low price points in the marketplace to meet this really tough economic condition that many of the countries are facing. So that's part of the reason why it's come down a little bit internationally.

Terry Bivens - J.P. Morgan

Okay. Thanks very much.

Operator

Thank you. Our next question comes from Vincent Andrews with Morgan Stanley. Please go ahead.

Vincent Andrews - Morgan Stanley

 

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