Smithfield faced losses in the first quarter

August 27, 2008 · By ProfitEdition News Filed Under News

According to Smithfield in the first quarter it lost $12.6 million, or 9 cents a share as an effect of hedging losses on feed-grain and live hog deals and asset disposals from a joint venture in Spain, while in last year $54.6 million, or 41 cents a share was earned by the pork producer. According to a FactSet Research analyst survey, Wall Street had anticipated Smithfield to earn 1 cent a share.

Sales exceeded beyond the average analysts expectations taking support of increased exports. Sale escalated 19 percent to $3.1 billion. According to Smithfield there is a spike in the fresh pork consignment to China, Russia, Japan and Europe because of feeble U.S. dollar and more costly pork prices somewhere else in the world. Company’s pork business operating profit for the quarter ended July 27 was more than doubled.

According to Chief Executive’s statement US consumers are also changing their eating habits that are already spending watchfully in the atmosphere of rising gas-pump prices and failing home values. Compared with last year quarter Smithfield paid 39 percent more for corn and 33 percent more for soybean meal that makes raise hogs more costly.

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