by FoodBizDaily.com staff writer
March 11 2010 - In its report of financial results for third quarter 2010 released today Smithfield Foods Inc presented a return to profitability. The meat processor highlighted growth in packaged meat business and in its overseas operations that were up 3% to $343.1 million.
The company reported earnings of $37.3 million, compared with a loss of $105.7 million in the same quarter last year. Total sales were $2.6 billion down from $3.26 billion.
"The third quarter demonstrated the ongoing strength of our packaged meats business, which continues to deliver very strong margins. We are extremely focused on this part of the business, it is paying dividends and the restructuring program is beginning to have an impact," said C. Larry Pope, president and chief executive officer.
"The action items called for in the Pork Group restructuring plan are complete and the benefits are meeting expectations. As of this month, we have closed all six plants that were announced as part of the restructuring plan early last year. We are on track to achieve the targeted $55 million of profit improvement this year, after applicable restructuring expenses, and $125 million of annual benefits beginning in fiscal 2011," he continued.
"Much of the success of the Pork Group restructuring plan is attributable to the benefits received from shuttering underutilized plants. These plant closures, combined with the rationalization of unprofitable business, have allowed this organization to realize strong bottom line growth. While the plan has intentionally caused a loss of volume in the Pork segment, it has resulted in a more competitive and efficient cost base and improved product mix to begin to focus on profitable top line growth," Mr. Pope remarked.
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Smithfield Foods, Inc.
Address: 200 Commerce Street Smithfield, VA 23430 United States
Telephone: +1-757-3653000
Fax: +1-757-3653017
About Smithfield Foods, Inc.
Smithfield Foods, Inc. is a hog producer, and pork processor. The Company conducts its business through five segments: Pork, International, Hog Production (HP), Other and Corporate, each of which comprises a number of subsidiaries. The Pork segment produces a variety of fresh pork and packaged meats products in the United States and markets them nationwide and to a number of foreign markets, including China, Japan, Mexico, Russia and Canada. The Pork segment operates over 40 processing plants. The International segment includes its international meat processing operations that produce a variety of fresh and packaged meats products. The HP segment consists of hog production operations located in the United States, Poland and Romania, as well as its interests in hog production operations in Mexico. The Other segment comprises its turkey production operations and its interest in Butterball, LLC. In October 2008, it completed the sale of Smithfield Beef Group, Inc. to JBS S.A.