7:27 AM
Smithfield Foods 2Q profits drops on grain costs
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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.
Posted in News on Thursday, December 4, 2008 12:00 am
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