DOW JONES NEWSWIRES
Smithfield Foods Inc. (SFD) announced fiscal first-quarter
results were below its expectations as the meat processor sees
greener pastures ahead.
The company didn't give details in a filing with the Securities
and Exchange Commission beyond saying "record" results in its
packaged-food business was more than offset by
greater-than-expected losses in its hog-production business.
While Smithfield noted the company met its planned production
and feed-cost cuts, "the company did not experience seasonal
improvements in hog prices" as the recession and H1N1 flu outbreak
depressed demand, particularly in the export markets.
The company also said the quarter ended Sunday was the last
which will be "significantly" impacted by grain positions
Smithfield entered last year. The company locked in some prices
just as commodities peaked.
Depressed hog prices and demand has been impacting Smithfield
for a while, and the company has responded with plant closures and
production cuts. The company's loss in the latest fiscal year was
its first since the 1970s.
Smithfield also its first-quarter results would also include
write-downs because of idled production as it looked to reduce herd
size and commodity exposure.
Smithfield's shares were recently up 1.5% at $12.89. The stock
is down 49% the past year.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com