SMITHFIELD FOODS REPORTS LOWER SECOND QUARTER EARNINGS
SMITHFIELD, Va., Nov. 13 /PRNewswire/ -- Joseph W. Luter III, chairman, president and chief executive officer of Smithfield Foods, Inc. (NASDAQ: SFDS), today announced that the company had net income of $4,968,000, or 31 cents per share, in the second quarter of fiscal 1992, down from net income of $5,180,000, or 36 cents per share, in the same quarter of fiscal 1991. Fiscal 1992 second quarter net income includes a non-recurring after-tax gain of $608,000, or 4 cents per share, on the sale of marketable securities.
In the first six months of fiscal 1992, the company had net income of $8,176,000, or 52 cents per share, up from $7,246,000, or 51 cents per share, in the same six-month period a year ago. Net income in the first six months of fiscal 1992 includes a non- recurring after-tax gain of $994,000, or 6 cents per share, on the sale of marketable securities.
The net income per share figures for the second quarter and first six months of fiscal 1992 were computed on 14 percent and 11 percent additional shares outstanding, respectively, than were the net income per share figures in the corresponding periods of the prior fiscal year, mainly reflecting the public sale by the company of 1,250,000 shares of common stock in June 1991.
Sales in this year's second quarter were $259,690,000, down slightly from $265,721,000 in the same quarter of fiscal 1991. Dollar sales in the first six months of fiscal 1992 were $500,952,000, compared to $501,785,000 in the same period a year ago. The decreases in sales in both the second quarter and first six months of the current fiscal year were attributable to lower unit selling prices for the company's products which were not completely offset by a substantial increase in unit volume sales of processed meats. The lower unit selling prices in the fiscal 1992 second quarter reflected a 14 percent drop in the average price of live hogs from the same quarter of the prior fiscal year.
Profitability in the second quarter of fiscal 1992 was adversely affected by lower margins on sales of fresh meats as compared to those in the same quarter a year ago, and by a smaller contribution from the company's joint hog production arrangement due to lower live hog prices.
"Despite our lower second quarter earnings, we continue to be optimistic for the balance of our 1992 fiscal year, primarily because of the increased number of hogs which are expected to come to market in the next six months," Luter said.
SMITHFIELD FOODS, INC.
Summary Statements of Income
(Dollars in thousands, except per share data)
Thirteen Weeks Ended Twenty-six Weeks Ended
Oct.27, Oct. 28, Oct. 27, Oct. 28,
1991 1990 1991 1990
Sales $259,690 $265,721 $500,952 $501,785
Income Taxes 7,748 8,138 12,773 11,259
Income Taxes 2,780 2,958 4,597 4,013
Net Income 4,968 5,180 8,176 7,246
Net Income Per Share .31 .36(A) .52 .51(A)
(thousands) 16,239 14,228(A) 15,819 14,296(A)
(A) Adjusted to reflect a two-for-one stock split effected in
/CONTACT: Aaron D. Trub of Smithfield Foods, Inc., 202-223-4224/
(SFDS) CO: Smithfield Foods, Inc. ST: Virginia IN: FOD SU: ERN SB-MH -- DC005 -- 3833 11/13/91 10:08 EST