Shares in US group Hormel Foods fell swiftly yesterday [Wednesday] when the company warned its second quarter earnings could fall to 29% below earlier predictions.
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Its shares sank more than 7%, or US$1.97 a share, to close at US$25 on the New York Stock Exchange.
The Austin, Minnesota-maker of Spa, Dinty Moore beef stew and Jennie-O turkey products said the month-long Russian ban on US poultry exports had led to a domestic glut of meat products that has sent wholesale prices for pork, beef and poultry spiralling.
Russia has now lifted the ban, but it was too late for Hormel’s Q2s. “The Russian ban on poultry imports has caused a temporary oversupply of protein in the market,” said Hormel chairman and CEO Joel Johnson in a statement announcing the lower earnings expectations.
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