Smithfield Foods higher indebted

by Editor
Monday, August 06, 2007

For the fiscal year 2007 (29 April) Virginia-based Smithfield Foods reported an increase in debts from $2.6 billion in 2006 to $3.1 billion.

Although the biggest hog producer and processor and marketer of fresh pork increased its total sales by approximately 4.4% to about $11.9 billion the net income dropped down 3.4% to $166.8 million.

Acquisitions like the takeover of the European meat division of Sara Lee, the purchase of the brand meat business of Conagra as well as its poultry business led to enormous financial burdens resulting in a higher accumulation of debt.

Nevertheless, Smithfield pursues its strategy of business expansion. In May it announced the takeover of the competitor Premium Standard Farms PSF that already accounts for the fiscal year 2008.