(AP) — Smithfield Foods Inc., the nation’s largest hog producer and pork processor, posted a smaller-than-expected fiscal fourth-quarter loss today as pork sales remained stable. The company said the swine flu outbreak had no significant impact on results.
Its shares rose 6 cents to $11.24 in morning trading.
The Smithfield, Va.-based company 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. Analysts’ estimates typically exclude one-time items.
Revenue dipped 1 percent to $2.85 billion from $2.87 billion, while pork sales edged up slightly to $2.46 billion. There was one extra week in the current fiscal year.
Analysts forecast higher overall sales of $3.06 billion.
Chief Executive Larry Pope said in a statement that the company’s packaged meats business performed well during the quarter and will likely produce strong results in the future.
But the hog production segment faces pressure from live hog oversupply and the existing ethanol policy. Pope believes the mandate for increased corn-based ethanol usage is detrimental to hog production, as corn prices have gone up since the plan was announced. Corn is the primary source of livestock feed.
“This is a dynamic the food industry has never before faced and has the unintended consequence of increasing food costs for the American consumer in the midst of a global recession,” Pope said.
As for the swine flu outbeak, Pope said it had a short-term impact on U.S. fresh pork demand, which hurt May results.
“As the consumer received more accurate information about the virus, we saw domestic market conditions begin to move back to more normal levels,” he said.
Smithfield is still dealing with some swine flu related restrictions in international markets such as China, which is hurting first-quarter exports.
For the year, Smithfield lost $190.3 million, or $1.35 per share, compared with a profit of $128.9 million, or 96 cents per share, in the previous year.
Loss from continuing operations was $242.8 million, or $1.72 per share. The prior year’s income from continuing operations was $139.2 million, or $1.04 per share.
Annual sales rose 10 percent to $12.49 billion from $11.35 billion.
Smithfield has more than $1.1 billion in available liquidity and lowered overall debt by more than $890 million in the current fiscal year. It is in ongoing refinancing talks with various lenders.
Pope said the company heads into 2010 with the goal of continuing to restructure its pork business, lowering debt, boosting liquidity and strengthening its balance sheet.
Business
<img src=" http://www.joplinglobeonline.com/images/zope/tuesday.gif" border=0> Smithfield Foods posts smaller-than-expected loss
- Business
-
-
Obama call for manufacturing revival a tough goal
President Barack Obama is making a strong election-year push for an economic revival “built on American manufacturing.” But he faces an uphill slog, with little consensus even within his own party on how to do it.
-
Stocks fall sharply as Greek deal is held up
Stocks are closing their worst day this year after Greece hit a roadblock on its way to a critical bailout.
-
Budget deficit drops to $27 billion in January
The budget deficit fell sharply in January compared to a year earlier, as an improving economy lifts income tax revenue.
-
Feds slap CA utility for San Onofre ammonia leak
Federal regulators say an ammonia leak that caused an emergency alert at Southern California’s San Onofre nuclear plant was caused by employees who failed to recognize degraded equipment and fix it.
-
Chicago officials make plans for potential massive protests of G-8, NATO summits
In Wisconsin, a group of environmentalists plans to bicycle to Chicago’s G-8 and NATO summits to protest an economy that relies too heavily on fossil fuel.
-
Obama praises Italian leader’s economic efforts
Eager for Europe to contain its economic troubles, President Barack Obama praised Italian Premier Mario Monti on Thursday for his efforts to lead Italy out of its fiscal quagmire.
-
Consortium in South wins federal approval for 2 new nuclear reactors
A consortium of utilities in the South won government approval Thursday to construct two new reactors at an estimated cost of $14 billion, the strongest signal yet that the three-decade hiatus of nuclear plant construction is finally ending.
-
Stocks fall at the open as Greek deal is held up
U.S. stocks opened lower Friday after Greece’s bailout deal was put on hold, a day after it seemed that the country had satisfied its creditors.
-
Asia stocks slip as Greek bailout remains in limbo
Asian stock markets dropped Friday after Europe’s finance ministers demanded more spending cuts from Greece before clearing a (euro) 130 billion ($170 billion) bailout to stave off the country’s bankruptcy.
-
Google’s first employee leaves to join education nonprofit
Google Inc.’s first hired employee, Craig Silverstein, is leaving the tech giant, where he’s worked since its founding, to sign on with the rising education startup Khan Academy.
- More Business Headlines
-
Obama Scraps Birth Control Mandate
US Airmen's Killer Sentenced to Life in Germany
Raw Video: Deadly Blasts in Syria
Romney Slams President Obama at CPAC
Gingrich: Pres. Obama 'waging War on Religion'
Navy Names Ship for Gabrielle Giffords
5 Killed in Wrong-way Crash on I-10 in La.
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
LA School in Sex Abuse Scandal Reopens
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Air Force Airlines: Leaders Get Polished Service
Ga Girl Fights Off Kidnapper at Walmart
Skip the Coffee Cup and Inhale Your Caffeine Fix
