Smithfield Foods Hit By Weak Hog Prices
SMITHFIELD, VA. (
) --
Smithfield Foods
(SFD)
reported a wider-than-expected loss in its first quarter due to hefty charges and lower hog prices.
During the quarter, the company lost $107.7 million, or 75 cents a share, compared with a loss of $13.2 million, or 10 cents a share, in the year-ago period.
Excluding hog-product impairment charges of $34.1 million and debt extinguishment charges of $7.4 million, the company lost 56 cents a share -- a penny lower than analysts expected.
Revenue declined 14% to $2.72 billion from $3.14 billion.
Going forward, the company will continue to reduce production, which management said should help offset weaker hog demand.
Last month, Smithfield rival
Hormel Foods
(HRL) - Get Report
said its third-quarter profit nearly doubled due to lower costs, but the company still saw shoppers limit spending on higher-priced products.
And
Tyson Foods
(TSN) - Get Report
reported a better-than-expected third-quarter, as earnings soared to $134 million, or 35 cents a share, compared with $9 million, or 3 cents a share, a year earlier.
-Reported by Jeanine Poggi in New York.
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