Smithfield profit soars on pork segment, insurance recovery
- March 10, 2011
Smithfield Foods reported a jump in profit in its third quarter as pork and live hog prices increased and the company recovered $120 million in fire insurance.
Profit for the pork and packaged meat producer soared to $202.6 million, or $1.22 per diluted share, compared with $37.3 million, or 22 cents per share, during the same quarter last year. The company reported $3.2 billion in sales during the quarter, compared with $2.9 billion last year.
“Strong global demand for pork, combined with tight supplies, propelled exceptional fresh pork results in the quarter,” Smithfield President and CEO C. Larry Pope said in a statement. “Smithfield’s highly competitive cost structure and coordinated sales and marketing platform allowed us to deliver another solid quarter in our packaged meats business.”
The company’s pork segment reported record earnings of $254.8 million, compared with $102 million during the same quarter the prior year.
The company said it has lowered its debt by $913 million during its fiscal year, lowering its debt level to $2.1 billion.