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Smithfield reports mixed year-end financials
Story Date: 6/17/2013
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Source: Lisa M. Keefe, MEATINGPLACE, 6/14/13
In what is expected to be its last financial report before its acquisition by China’s Shuanghui Group is closed, Smithfield Foods Inc. reported full-year net sales of $13.2 billion, up 1 percent from last year’s results, with net income of $183.8 million, down substantially from last year’s net income results of $361.3 million.
On a segment-by-segment basis, Smithfield turned in solid results on its pork businesses and did well on its packaged meats unit; hog production, however, suffered from higher feed costs and other inputs, the company said in a news release.
“Driven by both top and bottom line growth in packaged meats, these earnings reflect our continued transformation into a more value-added consumer packaged meats company,” C. Larry Pope, president and chief executive officer, said in the release.
For the fourth quarter alone, Smithfield turned in $29.7 million in net income on sales of $3.3 billion, compared with net income in the fourth quarter of fiscal 2012 of $79.5 million on sales of $3.2 billion.
IN the last 12 months, market share improved in bacon, cooked dinner sausage, dry sausage and marinated pork. In addition, the company broadened distribution of its core brands in cooked dinner sausage, deli meats, dry sausage, marinated pork, packaged lunchmeat and portable lunches, the company said.
Looking ahead, Smithfield promises to continue to pursue its strategic plan, which includes increased capital and marketing investments, support for product innovation, retain its hog production operations “ as a strategic point of difference,” and pursue a selected mergers and acquisitions in packaged meats and value-added products.”
Smithfield’s acquisition by Shuanghui is expected to be approved and finalized in the second half of calendar 2013.
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