Smithfield Foods returns to profit in 4th quarter

[June 16, 2011]  SMITHFIELD, Va. (AP) -- Smithfield Foods returned to a profitable fourth quarter Thursday, thanks to higher pork and live hog prices and strong demand overseas.

The world's largest hog producer also announced a $150 million share buyback.

Smithfield earned $98.4 million, or 59 cents per share, for the three months ended May 1. That compares with a loss of $4.6 million, or 3 cents per share, a year ago.

Removing a charge tied to early debt retirement, adjusted earnings were 85 cents per share.

A poll by FactSet suggests that analysts had expected earnings of 82 cents per share.

Revenue increased 7 percent to $3.12 billion from $2.91 billion, missing Wall Street's estimate of $3.19 billion.

Sales of fresh pork and packaged meats both improved during the quarter. Lower U.S. hog inventories also led to a 19 percent increase in live hog prices.

For the year, the Smithfield, Va., company earned $521 million, or $3.12 per share. In the prior year it lost $101.4 million, or 65 cents per share.

Revenue climbed 9 percent to $12.2 billion from $11.2 billion. Some of the strongest sellers were Armour LunchMakers, Curly's Barbecue, Kretschmar Deli and Smithfield Marinade.

Analysts forecast full-year earnings of $2.94 per share on revenue of $12.28 billion.

Smithfield said it will repurchase up to $150 million of its shares over the next two years using cash on hand.

[Associated Press]

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