Smithfield expects decline in profits
Smithfield Foods expects to report a decline in its fiscal third-quarter profit compared with a year ago on a drop in pig production earnings.
The world’s largest pork producer anticipates net income in a range of $0.53 to $0.56 per share for the quarter that ended January 28. Earnings were $0.63 per share one year prior to that.
Significant drop
Smithfield said the third quarter results will reflect a significant drop in pig production earnings partially due to increased earnings in its international segment and about $0.04 per share in tax-related adjustments.
However, the expected results are still above Wall Street estimates, since analysts expect profit of $0.41 per share.
In the second quarter, Smithfield’s earnings fell 13%, mainly because of lower margins on fresh meat and lower pork processing levels.
The company expects to report the official third-quarter results on March 1, 2007.
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• Smithfield Foods
