Smithfield Foods said yesterday (29 May) that it expects fourth-quarter earnings to be $0.30-0.35 a share, significantly below market expectations.
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The group said fourth-quarter earnings had been hit by higher costs in hog production due to increased corn prices and losses in the cattle feeding business. Smithfield also cited expenses associated with write-offs and changes in its tax rate to explain the disappointing result.
The US meat processor is scheduled to report its full fourth-quarter earnings on 7 June.
Despite Smithfield’s downbeat forecast, the group noted encouraging signs in its pork and international businesses. “In the fourth quarter, the company had strong earnings in its pork segment, including substantially improved packaged meats margins,” Smithfield said. “International operations continued to show improved profitability versus a loss last year.”
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By GlobalData
