J.M. Smucker Co. (SJM) cut its full-year sales and earnings guidance, citing a more competitive pricing environment and lower expectations for sales volume.

The company, meanwhile, delivered mixed results for the fiscal third quarter, with earnings and margins rising while sales fell. The results came in below Wall Street expectations.

Smucker said it now expects sales to decline 5% for the year, after previously projecting a 2% decline in November. The company also slashed its earnings estimate to between $5.55 and $5.60 a share from its previous target of $5.72 to $5.82.

In addition to pricing competition and lower volumes, Smucker said the lower guidance reflects an unplanned trade spending accural adjustment in the most recent period, along with headwinds from foreign exchange.

The U.S. consumer foods segment, which includes Smucker's fruit spreads and Jif peanut butter, posted flat volume in the period, along with a 4% decline in sales. Profit for the segment declined about 1%, while lower commodity costs were offset by increased manufacturing and marketing costs, as well as lower realized prices.

Smucker's U.S. coffee business, which includes Folgers and Dunkin" Donuts brands, posted a 2% volume increase, but lower prices helped weigh on sales, which were down 8% in the quarter. The segment's profit, however, grew 4% on lower coffee costs, marketing expenses and manufacturing overhead.

"We underperformed in our foodservice and spreads businesses, but view these as near-term issues," Chief Executive Richard Smucker said. "While the fourth quarter will be a difficult financial comparison, we are optimistic about our prospect for growth as we head into the new fiscal year."

For the period ended Jan. 31, Smucker posted earnings of $166.7 million, or $1.59 a share, up from $154.2 million, or $1.42 a share, in the prior-year period. Excluding special items, per-share earnings rose to $1.66 from $1.47.

Sales fell 6% to $1.47 billion, reflecting lower prices, particularly on coffee and peanut butter.

Analysts polled by Thomson Reuters most recently projected earnings of $1.68 a share and revenue of $1.53 billion.

Gross margin widened to 37.2% from 34.4%.

Shares of Smucker were inactive premarket. The stock closed at $95.14 Thursday and is down 8.2% so far this year.

Write to Michael Calia at michael.calia@wsj.com

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