Smithfield Foods 2Q profits drops on grain costs
7:27 AM
Posted: Thursday, December 04, 2008
SMITHFIELD, Va. (AP) - Pork producer Smithfield Foods has reported a 76% drop in its fiscal second-quarter earnings, as high feed costs linked to skyrocketing grain prices hurt its hog and Butterball turkey operations.
The Smithfield, Va.-based company says profit fell to $4.2 million, or 3 cents per share, from year-ago profit of $17.4 million, or 13 cents per share. Losses from continuing operations totaled 21 cents per share, compared with year-ago profit on the same basis of 17 cents.
Sales rose to $3.15 billion from $2.75 billion, but corn costs were 65% higher than a year ago and soybean meal costs surged 59%.
Analysts surveyed by Thomson Reuters expected a smaller loss of 10 cents per share on higher revenue of $3.2 billion.
In Iowa, Smithfield has a John Morrell hog slaughtering and boneless loins production plant in Sioux City and a slaughtering plant which produces bacon and processed hams in Denison.
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