Sept 4 (Reuters) - Skippy peanut butter maker Hormel

Foods ( HRL ) cut its annual sales forecast on Wednesday, hurt

by lower commodity prices and a production disruption at its

Planters brand manufacturing facility in Virginia.

Hormel's shares were down about 5% in premarket trading. The

company also missed market expectations for third-quarter sales

and narrowed its annual adjusted profit target.

Lower commodity prices for high-volume export products such

as turkey and fresh pork have weighed significantly on Hormel's

business.

A food safety issue at its facility in Suffolk, Virginia,

which makes the Planters brand of snacks, also took a toll on

U.S. retail volumes in the quarter ended July 28, which fell 9%.

Hormel said it now expects an impact of 6 cents per share

related to the disruption for the fiscal year ending October

2024. It is also assessing the financial impact of storm damage

at its facility in Papillion, Nebraska, it added.

The Austin, Minnesota-based company expects net sales of

$11.8 billion-$12.1 billion for fiscal 2024, down from its prior

forecast of $12.2 billion-$12.5 billion.

Its quarterly net sales fell 2.2% to $2.90 billion, missing

analysts' average estimate of $2.95 billion, as per LSEG data.

Still, budget-conscious consumers making more meals at home

helped drive demand for several key Hormel brands such as

Jennie-O lean ground turkey and Applegate's meats, as well as

sauces and snacks, partially offsetting overall declines.

Peer Tyson Foods ( TSN ) topped market expectations for

revenue and profit in August as demand recovered for its

packaged meats and cold cuts and on leaner inventory, such as in

its chicken supplies.

Excluding items, Hormel Foods ( HRL ) earned 37 cents per share for

the third quarter. Analysts had expected 36 cents per share.

The company expects annual adjusted earnings per share

between $1.57 and $1.63, compared with the $1.55 to $1.65 per

share forecast earlier.

(Reporting by Juveria Tabassum; Editing by Janane Venkatraman

)