Segment Results Net sales and operating profits for each of the company’s segments is set forth below. The company is an integrated enterprise, char- acterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, we do not represent that these  segments, if operated independently, would report the operating profit and other financial information shown below. (Additional segment financial information can be found in Note K of the Notes to Consolidated Financial Statements.) Grocery Products: Grocery Products net sales increased 6.6 percent for the quarter and 0.5 percent for the year compared to fiscal 2003. Sales tonnage volume decreased 1.3 percent for the quarter and 4.2 percent for the year compared to year ago results. Operating profit for Grocery Products decreased 5.3 percent for the quarter and 15.7 percent for the year compared to fiscal 2003. This segment experienced significantly higher raw material costs throughout fiscal 2004, which pressured product margins and contributed to decreased operating profit. The price increase on all Grocery Product items that was implemented on June 14, 2004, partially offset the impact of these higher costs and resulted in increased net sales in the fourth quarter compared to the prior year. The company expects raw material prices in fiscal 2005 to be consistent with fiscal 2004 averages.  Lower tonnage volume also reduced the operating profit of this segment. Declines were primarily due to  Dinty Moore canned products (down 3,863,000 lbs., or 18.3 percent, for the fourth quarter and 10,914,000 lbs., or 15.6 percent, for the twelve months) and  Dinty Moore Classic Bakes complete meals (down 536,000 lbs., or 32.8 percent, for the fourth quarter and 10,519,000 lbs., or 75.6 percent, for the twelve months). However, strong performance in the ethnic line of products continued in the fourth quarter with total tonnage up 1,530,000 lbs., or 7.5 percent, led by  Carapelli olive oil (up 757,000 lbs., or 23.5 percent) and Herdez Mexican products (up 1,568,000 lbs., or 21.0 percent). Dinty Moore microwave products also showed strong growth for the year (up 3,557,000 lbs., or 18.3 percent), coinciding with a package change from a box to a sleeve on tray items.  Several initiatives were implemented in fiscal 2004 to enhance growth in the Grocery Products segment. During the third quarter, the segment launched a new packaging concept for chili items using the Tetra Recart carton technology, and also began the national roll-out of  Stagg chili (previously sold only in markets west of the Mississippi River). The overall chili category saw a 29.0 per- cent growth nationally in the fourth quarter with the introduction of two new competitors, and the company has begun an aggressive marketing program to further promote its chili products in fiscal 2005. The new  SPAM Singles product has also been introduced in four test markets and initial results indicate positive growth for the canned luncheon meat category. Due to these ongoing initia- tives, the company anticipates Grocery Products tonnage volume will increase slightly in fiscal 2005. Refrigerated Foods: Net sales by the Refrigerated Foods seg- ment were up 19.9 percent for the quarter and 13.9 percent for the twelve months compared to fiscal 2003. Sales tonnage increased 9.6 percent for the quarter and remained the same  for the fiscal year as compared to 2003. Tonnage comparisons  for the twelve months are impacted by the discontinuance of hog 20 Hormel Foods Corporation Fourth Quarter Ended Year Ended October 30, 2004 October 25, 2003 % Change October 30, 2004 October 25, 2003 % Change Net Sales Grocery Products $ 222,583  $ 208,791 6.6 $ 758,256 $ 754,331 0.5 Refrigerated Foods 646,715 539,457 19.9 2,300,399 2,019,753 13.9 Jennie-O Turkey Store 317,323 268,152 18.3 1,052,682 924,430 13.9 Specialty Foods 116,946 108,370 7.9 467,581 315,177 48.4 All Other 41,649 45,111 (7.7) 200,957 186,637 7.7 Total $1,345,216 $1,169,881 15.0 $4,779,875 $4,200,328 13.8 Segment Operating Profit Grocery Products $ 43,950 $ 46,417 (5.3) $ 128,838 $ 152,808 (15.7) Refrigerated Foods 38,713 51,888 (25.4) 141,361 103,167 37.0 Jennie-O Turkey Store 31,415 17,015 84.6 78,593 41,069 91.4 Specialty Foods 5,683 4,869 16.7 25,674 17,986 42.7 All Other 3,802 8,388 (54.7) 23,278 25,743 (9.6) Total Segment Operating Profit 123,563 128,577 (3.9) 397,744 340,773 16.7 Net interest and investment income (5,198) (6,645) 21.8 (12,779) (21,079) 39.4 General corporate expense (8,374) (10,315) 18.8 (20,400) (30,363) 32.8 Earnings Before Income Taxes $ 109,991 $ 111,617 (1.5) $ 364,565 $ 289,331 26.0