Why is Smithfield foods making headlines?
Smithfield Foods loss less than expected CHICAGO (Reuters) – Smithfield Foods Inc (SFD.N) reported a quarterly loss on Tuesday as high feed costs continued to hurt its hog business and the recession slowed pork sales. But the loss was smaller than expected and Smithfield’s shares were about flat. Influenza A H1N1, commonly called swine flu, briefly hurt its domestic business in May and continues to restrict exports, specifically to China, the company said. Going forward the company expects more losses on hogs and will be cutting its breeding herd an additional 3 percent for a total 13 percent reduction in the past year in order to trim the losses. “We will continue to experience losses, I think, in live hog production through the second quarter of this fiscal year and maybe the third, ” Chief Executive C. Larry Pope said during a conference with Wall Street analysts. Pork profits slipped during the quarter due to lower fresh pork prices, but the packaged meats segment had record profit
The Smithfield, Va.-based company said although the swine flu dampened demand for pork in the U.S. in May, the market is already back up to normal levels. Chief Executive Larry Pope said on a conference call with investors that the company’s loss in the quarter had far more to do with rising animal feed costs, which dug into profits in the company’s hog production division. “I can summarize the quarter and I can summarize the year very, very succinctly in saying that we have a hog production issue,” Pope said. “It doesn’t take a rocket scientist to figure out the issue is grain costs.” Overall, Smithfield Foods lost $78.8 million, or 55 cents per share, in the three months ended May 3, in contrast to a profit of $2.4 million, or 2 cents per share, a year ago. The loss was smaller than the 60 cents per share loss analysts polled by Thomson Reuters had expected. The hog production segment lost $170.8 million alone in the quarter. The division raises hogs — which means the company buys l
Smithfield Foods reports $190.3M yearly loss – first since 1975 Smithfield Foods. Inc. on Tuesday announced a $190.3 million loss for fiscal 2009 – its first yearly loss since 1975. The pork producer continued to suffer from higher feed costs, reporting a hog-production loss of $171 million for the fourth quarter. “The part of the business that has carried this organization for many years has flipped on its head as a result of sharply increased raising costs,” said C. Larry Pope, Smithfield’s president and CEO, during a conference call with analysts Sources: http://hamptonroads.
