Smithfield Foods 3Q profit falls 54,6 mln dollars

By Anastasia Tomazhenkova: The world’s largest pork processor Smithfield Foods posted that fiscal third-quarter net profit fell to 54.6 million dollars, or 41 cents per share, from 60.4 million dollars, or 54 cents per share from the year-ago period, mainly because of lower live hog prices and a higher tax rate.

Photo: Smithfield Foods 3Q profit falls 54,6 mln dollars

Earnings from continuing operations fell to 44 cents per share from 55 cents per share.

The Smithfield, Va., processor and marketer of pork and packaged meats said sales rose 16% to 3.79 billion dollars from 3.28 billion dollars.

Results for the third quarter ended January 27 were negatively impacted by a higher tax rate that took a bite of about 6 cents per share from earnings.

Analysts surveyed by Thomson Financial forecast earnings of 21 cents per share and revenue of 3.6 billion dollars, on average.

Looking ahead, Smithfield said pork exports are expected to grow, but it's facing soaring grain prices. The company forecast a "very difficult" fourth quarter, with a loss expected in its hog production operations.

"The key to overall results will be the extent to which our pork segment results offset anticipated weak performance from our hog production segment," Smithfield said.