Smithfield Profit Misses Estimates on Weak Export Demand
Smithfield Foods Inc. (SFD), the U.S. pork producer that China’s Shuanghui International Holdings Ltd. is trying to buy for $4.7 billion, posted earnings that missed analysts’ estimates after an increase in feed costs and lower demand in some foreign markets.
Earnings dropped to 27 cents a share in the quarter ended July 28 from 40 cents a year earlier, the Smithfield, Virginia-based company said today in a statement. That trailed the 47-cent average of five estimates compiled by Bloomberg. Fiscal first-quarter sales rose 9.8 percent to $3.39 billion, beating the $3.19 billion average of five estimates.
“Normal seasonal weakness in fresh pork was exacerbated by declines in key export markets,” Pope said.
Smithfield dropped 0.1 percent to $33.94 at 10:32 a.m. in New York. Hong Kong-based Shuanghui International announced its $34-a-share cash offer on May 29. Smithfield shareholders will vote on the takeover at a Sept. 24 meeting. The deal is subject to a review from the Committee on Foreign Investment in the U.S., or CFIUS.
To contact the reporter on this story: Gerrit De Vynck in Toronto at email@example.com
To contact the editor responsible for this story: Simon Casey at firstname.lastname@example.org