US meat giant Smithfield Foods today (8 December) posted a drop in second-quarter profits amid higher input costs.
The company reported net income of US$120.7m in the three months until the end of October, sliding from $143.7m in the same period last year. Operating profit dropped to $224.7m, compared to $278m in the same-year period.
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The fall in profits was in spite of revenue jumping more than 10% to $3.31bn.
President and CEO Larry Pope described Smithfield as “thriving” despite the fall in income.
“Our business is thriving and we are proud to deliver yet another quarter of quality and consistent earnings to our shareholders led by strong results in our pork segment,” he said.
“Although we were disappointed in the performance of our international businesses, we were pleased with the sequential improvement in that segment from last quarter in the face of continued high raw material costs and soft demand in Europe.”
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By GlobalDataLast month, Smithfield announced the closure of a plant in Portsmouth, Virginia, hitting 425 jobs.
It said the factory, which was constructed in the 1970s, is obsolete and will close in 2013.
