Meat + Poultry - March 2006 - 12

Business Notes
Smithfield's third quarter income slips on exports
Declining pork prices and higher expenses led to a 27 percent drop in income at Smithfield Foods, Inc., Smithfield, Va., in the
third quarter ended Jan. 29. Net
income in the
quarter was $71 million, equal to 64c
per share on the common stock, down
from $97.5 million, or 88c per share, in
the same period last year.
In the third quarter, sales declined
on lower average selling prices in the
pork segment, despite overall volume
increase. Net sales for the quarter totaled $2,947,900, down 4 percent from
$3,060,100 in the year ago quarter.
Smithfield's pork segment produced
strong earnings as a result of lower

raw material costs and improved
product mix. The company enjoyed a
good holiday ham season, with significantly higher
volumes and margins in smoked
hams. Although
Smithfield's total processed meats
volume grew a modest 2 percent,
important, higher-margin product
categories, including dry sausage,
pre-cooked sausage, spiral hams and
pre-cooked ribs, recorded doubledigit growth. Further processed meats
margins were well above those of the
same quarter last year.
The company continued to concentrate on using raw materials internally and upgrading its value-added

ACCELERATING
INNOVATION

TIPPERTIE®
IPPERTIE®
T
2nd
Tie ® is hosting its 2
annual Technology Days
and you and your team are invited to loin us in A pex,
North Carolina. Each day we will offer professional
tours of our facilities where you will see:

Ti pper

The Newest Innovative Packag ing and Processing
Equipment from Tipper Tie ® .
Manufacturing Best Practices including 5 5,
S.Lean
Manufacturing, Kan Ban systems ,and state-of-the-art
quality statistical process control equipment.

To make your reservation call
A. Moffitt
Moff itt at 1 .800.331.2905 or
s ign
ig n-up
-up on our web site at:

categories. To this end, Smithfield
has increased its pre-cooked bacon
capacity by 40 percent this year,
emerging as the major provider to
the foodservice industry. In addition
to expansion in the bacon category,
the company's ready-to-eat deli ham
plant is scheduled to come on line
this summer.
Smithfield's beef operations reported a modest profit in the third
quarter in spite of export markets that
were closed most of the quarter, tight
cattle supplies and high cattle costs.
Beef volume rose 7 percent and shipments to foodservice customers rose
significantly.
The company's joint venture turkey
operations in the other segment experienced increased earnings due to favorable pricing and feed costs.

Plus,you'l have an opportunity to:
Discuss industry trends and your innovative ideas
with the Ti pper Tie ® Management Team.
Have the experience of a lifetime in an authentic
N ASCAR simulator. Find out what if's like to be
NASCAR
behind the wheel with the pedal to the metal on
the track but without the risksl

TECHNOLOGY
TECH
NOLO
DA

qI11i
1ij

May 1-3 200á
200a

''
.

For more information, see Page 89

Meat + Poultry - March 2006

Table of Contents for the Digital Edition of Meat + Poultry - March 2006