Weak export market bogs down Smithfield earni...

Weak export market bogs down Smithfield earnings

A challenging year in hog production due to a weak export market was in part to blame for a 49% decline in fiscal 2013 earnings at Smithfield Foods, Inc.

Net income in the year ended 28 April was $183.8 mill., equal to $1.26 per share on the common stock, which compared with $361.3 mill., or $2.23 per share, in fiscal 2012. Net sales increased narrowly to $13,221.1 mill. from $13,094.3 mill.

For the fourth quarter ended 28 April, the company had income of $29.7 mill., or 21c per share, which compared with income of $79.5 mill., or 50c per share, during the same quarter of the previous year. Sales for the quarter were $3,320.7 mill., up from $3,209.2 mill.

The pork segment had operating profit of $631.6 mill. in fiscal 2013, up 1% from $623.7 mill. during fiscal 2012. Sales for the segment were $11,076.1 mill., down slightly from $11,093 mill.

Within the pork segment, fresh pork saw operating profit decline 27% during the year while packaged meats operating profit increased 17%. Total sales in the fresh pork segment fell 3% to $4,924.1 mill. in fiscal 2013, while total sales of packaged meats increased 2% to $6,152 mill. Smithfield said packaged meats sales grew across all trade channels and in 8 of the company's 12 core brands.

Smithfield said market share improved in bacon, cooked dinner sausage, dry sausage and marinated pork. In addition, the company broadened distribution of its core brands in a number of product categories, including cooked dinner sausage, deli meats, dry sausage, marinated pork, packaged lunchmeat and portable lunches.

The hog production segment suffered an operating loss of $119.1 mill. during fiscal 2013, which compared with operating income of $166.1 mill. in fiscal 2012. Sales for the segment were $3,135.1 mill., up 3% from $3,052.6 mill.

Following the announcement on May 29 that Shuanghui International Holdings Ltd. has agreed to acquire Smithfield for approximately $7.1 bill., Smithfield said it will no longer hold conference calls to discuss its quarterly and annual results.
Source: Smithfield Foods Inc.