Smithfield profit tumbles 50%
Smithfield Foods profits dropped 50% in the
fiscal first quarter of 2006, the company announced
These figures were the result of costs related to the sale of a business
and lower earnings from its industry-leading pork production operations. Profit
for the quarter ended July 30 fell to $24.6 million, or $0.22 per share, from
$49 million, or $0.44 per share, during the same period last year.
"I will tell you I am not happy about this quarter," C. Larry Pope,
president and chief operating officer, said.
Operating results in the pig production segment declined due to higher
raising costs, lower volumes and an impairment charge of $4.2 million relating
to the pending sale of the company's Brazilian live pig production operations.
Operating earnings for the business fell to $90 million from $115 million.
Pope said a strong pig market and increasing seasonal demand as the weather
cools should be good for fiscal-year results.
He also noted that Smithfield
complete its acquisition of most assets of the branded meats business of ConAgra Foods
in the second
The company will also continue its focus on for
instance Poland. Smithfield has been recently said to focus on Romania, because
of problems in Poland. However, it turns out that the giant, the owner of Polish
grow in Poland as well.
Capacity is growing because Animex is quickly increasing pork exports to UK
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