Smithfield income falls 16% in quarter

by Staff
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SMITHFIELD, VA. — Increased costs and a difficult prior-year comparison led income lower at Smithfield Foods, Inc. in the second quarter.

For the quarter ended Oct. 30, the company had income of $120.7 million, equal to 74c per share on the common stock, down 16% from $143.7 million, or 87c per share, during the same quarter of the previous year. During the quarter the company had sales of $3,312.6 million, up 10% from $2,998.8 million.

“Our business is thriving, and we are proud to deliver yet another quarter of quality and consistent earnings to our shareholders led by strong results in our Pork segment,” said C. Larry Pope, president and chief executive officer. “Importantly, we were able to grow the top line in our packaged meats business in the second quarter — while exhibiting strong pricing discipline to maintain margins in the normalized range — by leveraging our closely coordinated sales and marketing platform to expand share and distribution. Our Farmland, Smithfield, Armour and Curly’s brands all achieved double-digit retail sales and volume growth in the quarter.”

For the six months ended Oct. 30, the company had income of $202.8 million, or $1.24 per share, down 8% from $220 million, or $1.33 per share, during the same period of the previous year. Sales for the six months were $6,406.8 million, up 9% from $5,900.1 million.

“Our fresh pork and hog production businesses continued to benefit from a balanced domestic supply and demand dynamic, as well as very strong exports,” Mr. Pope said. “Pork exports continued their upward trajectory, fueled by strong gains in shipments to Asia. Although we were disappointed in the performance of our international businesses, we were pleased with the sequential improvement in that segment from last quarter in the face of continued high raw material costs and soft demand in Europe.”

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