Printer Friendly

SMITHFIELD FOODS REPORTS LOWER FIRST QUARTER EARNINGS

 SMITHFIELD FOODS REPORTS LOWER FIRST QUARTER EARNINGS
 SMITHFIELD, Va., Aug. 18 /PRNewswire/ -- Joseph W. Luter III,


chairman, president and chief executive officer of Smithfield Foods, Inc. (NASDAQ-NMS: SFDS), today announced that the company had net income of $1,546,000, or 10 cents per share, in the first quarter of fiscal 1993, down from net income of $3,208,000, or 21 cents per share, in the same quarter of fiscal 1992. Fiscal 1992 first quarter net income included a non-recurring after-tax gain of $386,000, or 3 cents per share, on the sale of marketable securities.
 First quarter profitability was adversely impacted by lower fresh pork margins, hedging losses and a smaller contribution from the Smithfield-Carroll's joint hog production arrangement due to lower live hog prices. Additionally, costs and inefficiencies related to several expansion projects currently underway also depressed first quarter results.
 Sales in this year's first quarter were $228,256,000, down from $241,262,000 in the same quarter of fiscal 1992. The decrease in sales was attributable to lower unit selling prices for the company's products which were not completely offset by increased sales tonnage of both fresh pork and processed meats. The lower unit selling prices in the fiscal 1993 first quarter reflected a 15 percent drop in the average price of live hogs from the same quarter of the prior fiscal year.
 "With vertical integration, the new genetically lean NPD pig, and the new Bladen County, N.C., fresh pork facility, we have laid the groundwork for what we believe will ultimately be a period of sustained, unprecedented growth in sales and earnings for Smithfield Foods," Luter said.
 "In short, we have never been more optimistic about the company's future," he added.
 He noted, however, that in the near term earnings could be adversely affected by start-up costs at the Bladen County plant.
 SMITHFIELD FOODS, INC.
 Summary Statements of Income
 (Unaudited)
 (In thousands, except per share data)
 Thirteen Weeks Ended
 Aug. 2, 1992 July 28, 1991
 Sales $228,256 $241,262
 Income Before Income Taxes 2,630 5,025
 Income Taxes 1,084 1,817
 Net Income 1,546 3,208
 Net Income Per Share .10 .21
 Average Shares Outstanding 15,639 15,398
 -0- 8/18/92
 /CONTACT: Aaron D. Trub of Smithfield Foods, Inc., 202-223-4224/
 (SFDS) CO: Smithfield Foods, Inc. ST: Virginia IN: FOD SU: ERN


MH -- DC004 -- 0811 08/18/92 08:52 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 18, 1992
Words:403
Previous Article:AMERICAN EXPLORATION JOINT VENTURE WITH TEXACO ANNOUNCES OIL DISCOVERY IN TUNISIA
Next Article:CHRYSLER FINANCIAL EXTENDS CREDIT LINE
Topics:


Related Articles
SMITHFIELD FOODS REPORTS LOWER SECOND QUARTER EARNINGS
SMITHFIELD FOODS REPORTS LOWER FISCAL 1992 EARNINGS
SMITHFIELD FOODS REPORTS SMALL FIRST QUARTER LOSS
Smithfield Foods Reports Record First Quarter Earnings Excluding Nonrecurring Charge
Smithfield Foods Reports Record Second Quarter Earnings
Smithfield Foods Projects Higher Third Quarter Earnings.
Smithfield Foods Reports Record Second Quarter Earnings.
Smithfield Foods Expects Sharply Higher First Quarter Earnings.
Smithfield Foods Announces Record Second Quarter; Earnings Double Those of Last Year.
Smithfield Foods Reports Record First Quarter Earnings.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters