Pork sales help increase Smithfield profits
Growing sales in pork - and beef - have helped more than double Smithfield
Foods' profits in the fiscal first quarter of 2007.
Net earnings for the quarter that ended July 29 were $54.4 million, up from
Sales increased 23%, reaching $3.36 billion, pork
sales hit $2.23 billion, up from $1.74 billion.
Smithfield CEO C.
Larry Pope said in a press release, "Given the challenges of higher grain costs
and the continued adverse fresh pork environment, I am generally satisfied with
our performance in the first quarter."
The pork segment's packaged
meat volume grew 28%, primarily the result of the company's acquisition of the
Armour-Eckrich processed meats business from ConAgra Foods during
This week it was revealed that a third
Smithfield farm in Romania was contaminated with Classical Swine Fever
the company to kill all 15,000 animals. The farm is located near Igris, in West
Romania, near the Hungarian border.
Another 18,000 pigs in the
neighbourhood will also be slaughtered for precautinary reasons.
recently, two more farms in Romania had to be emptied after CSF outbreaks,
leading to the slaughter of 36,000 animals and perhaps $4 million to $5 million.
Despite the fact that the spread of Classical
Swine Fever (CSF) at Smithfield's hog farms in Romania may prove troublesome in
the future, Pope said: "I continue to be pleased with the progress we are making
in Western Europe and Poland."
"This most recent setback in Romania
is disappointing and will certainly impact our results in that country for some
time going forward. However, we remain committed to our Romanian
â€¢ Smithfield Foods
â€¢ ConAgra Foods
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