Chinese meat processor Zhongpin has cited pressure on local pork prices for its decision to cut its financial targets for 2009.
The company, which reported a rise in third-quarter sales and profits yesterday (9 November), said pork prices had stablised after months of increases.
Zhongpin booked a 30.7% jump in net income to $13.2m for the third quarter to the end of September; revenues were up 26.7% at $194.9m.
Diluted earnings per share increased 29.4% to $0.44 in the third quarter of 2009.
The group’s 2009 guidance for revenues is now a range of $720-$730m, down from a range of $780-810m.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDiluted earnings per share for the full year 2009 has been revised downward to a range of $1.38 to $1.40 – from $1.50-1.63.
Nevertheless, chairman and CEO Xianfu Zhu said Chinese economic growth will continue to drive consumption of pork.
“We believe the outlook for the long-term potential of China’s pork processing industry remains very positive,” Zhu said.
“Chinese citizens love pork and use it for their primary source of protein, for extra nourishment in the winter, and for traditional family celebrations, especially during the Chinese New Year and Spring Festival that occurs each year in the January-February period.”
