Senior management officials at IBP, inc. (NYSE: IBP) today reported they believe the company’s 2001 earnings should meet previous estimates.
“It is not common practice for us to issue earnings projections, however, given recent statements about the company’s 2001 financial performance, we feel compelled to provide our perspective,” according to Robert L. Peterson, IBP chairman and chief executive officer. “While a recent analyst projection of $0.12 per share in earnings for the first quarter is reasonable, we continue to believe 2001 earnings could be in the $1.80 to $2.20 per share range. This range is consistent with our previous estimate of $1.93 per share, which was included in IBP’s preliminary LBO proxy last fall.”
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Meat industry analysts are forecasting an increase in livestock supplies, a factor that should contribute to improved earnings during the remainder of the year. Livestock industry publications are reporting “a record number of cattle on feed for this time of year,” as well as the expectation of “large marketings come late spring and summer.” This should be very positive for IBP’s beef results in the second and third quarters of 2001.
There are also predictions by pork industry analysts of greater hog supplies in the last half of 2001. This should result in lower raw material costs and higher earnings for both IBP’s fresh pork operations and the company’s Foodbrands America unit, which produces many pork-based products.
“We currently expect Foodbrands to perform considerably better than a year ago,” Peterson said.
Headquartered in Dakota Dunes, South Dakota, IBP has more than 60 production sites in North America, joint venture operations in China, Ireland and Russia and sales offices throughout the world. The company, which generates annual sales of $17 billion, employs over 50,000 people.
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By GlobalDataForward Looking Statements
Certain statements contained in this communication are “forward-looking statements”, such as statements relating to future earnings of IBP, increases in livestock supplies and decreases in raw material costs. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Among the factors that may cause actual results to differ materially from those expressed in, or implied by, the statements are the following: (i) fluctuations in the cost and availability of raw materials, such as livestock and feed grain costs; (iv) changes in the availability and relative costs of labor; (v) market conditions for finished products, including the supply and pricing of alternative proteins; (vi) effectiveness of advertising and marketing programs; (vii) changes in regulations and laws, including changes in accounting standards, environmental laws, and occupational, health and safety laws; (viii) access to foreign markets together with foreign economic conditions, including currency fluctuations; (ix) the effect of, or changes in, general economic conditions; (x) adverse weather conditions; (xi) adverse results from on-going litigation; (xii) changes in accounting policy or treatment; and (xiii) adverse market reactions to reported health and safety issues affecting livestock. IBP undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
