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Better Pork Featured Articles

Better Pork magazine is published bimonthly. After each edition is published, we share featured articles online.


Pork exports contribute to Smithfield's profit comeback

Tuesday, May 31, 2011

Smithfield Foods Inc., based in Virginia, cites pork exports to Canada, along with other countries, as contributing to quarterly earnings that far exceeded expectations.

In the quarter ending in January, Smithfield, the world's largest pork producer, exported 24 per cent of its production. According to published reports, chief executive Larry Pope credited double digit increases in sales to Japan, China Korea and Canada. As a result, Smithfield revenue rose 10 per cent to $3.19 billion, above the $3.16 billion average analyst forecast. The hog production unit still lost money, but it was only $2.3 million compared to $78.3 million a year before as higher hog prices made up for expensive feed.

Across the industry, Pope said when announcing the company's financial situation, "supply and demand are in balance."

Smithfield said it reduced its debt by $913 million by January, bringing its total debt level to $2.1 billion.  BP

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