US meat producer Smithfield Foods said it expects higher raw material costs to weigh on its fresh pork and packaged meat margins in its fourth quarter.
Speaking ahead of a two-day investor meeting starting today (21 April), the firm added that it does not expect its fourth-quarter hog production segment results to reflect the benefits of the “dramatically” improved live hog production environment because of “significant mark-to-market losses” on a portion of its lean hog hedged position.
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Nonetheless, Smithfield said it anticipates “solid results” in its pork segment in the fourth quarter of fiscal 2010.
The firm announced today that it will hold a number of investor meetings this week to provide the company’s long-term outlook and strategy.
The meetings will be conducted by president and CEO Larry Pope, and executive vice president and CFO Robert Manly.
The meetings, Smithfield said, are intended to provide additional information to investors regarding the company’s long term outlook as a result of its strategic focus on driving profitable growth via its consumer packaged meats business.
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By GlobalDataManly and Pope will also discuss new cost savings opportunities and improved commodity pricing in its hog production segment.
