Smithfield posts 1Q profit on higher pork pricesSMITHFIELD, Va. — Smithfield Foods Inc. said Wednesday higher selling prices for pork and improvement in hog market prices helped it return to a profit in its fiscal first-quarter.
SMITHFIELD, Va. — Smithfield Foods Inc. said Wednesday higher selling prices for pork and improvement in hog market prices helped it return to a profit in its fiscal first-quarter.
CEO C. Larry Pope said the business environment was “very favorable in the pork segment and sharply improved in the hog production segment.” He said his outlook for 2011 remains positive.
“All parts of our business are profitable and we are focused on lowering our hog production segment cost model and capitalizing on our restructured pork group,” he said.
The meat producer reported net income of $76.3 million, or 46 cents per share, for the three months ended Aug. 1. That matched analyst expectations, according to a poll by Thomson Reuters.
The Smithfield, Va., company lost $107.7 million, or 75 cents per share, in the third quarter a year ago.
Revenue rose 7 percent to $2.9 billion from $2.7 billion a year ago. Analysts expected higher revenue of $3.07 billion. Results were helped by higher average unit selling prices in the pork segment and higher live hog market prices, Smithfield said.
Fresh pork revenue rose 10 percent to $1.15 billion, while packaged meat revenue rose 5 percent to $2.41 billion, helped by strong sales of the brands Curly’s BBQ, Off the Bone Lunchmeats, Armour LunchMakers and Kretschmar Deli.