News Column

Smithfield reports record profit for 2nd quarter

August 11, 2014

By Philip Walzer, The Virginian-Pilot



Aug. 11--Smithfield Foods Inc. today reported a record second-quarter profit of $142.9 million, more than four times its $32.4 million income in the second quarter of 2013.

The locally based pork company also said it had record gains for the first half of the year. Income totaled $248.2 million, nearly five times its $50.6 million profit for the first half of 2013.

Sales totaled $3.8 billion in the second quarter of 2014, up 14 percent from the same time frame last year.

The company was bought for $7.1 billion last year by Shuanghui International Holdings Ltd. of Hong Kong, which later changed its name to WH Group Ltd. It was the largest purchase of a U.S. company by a Chinese business.

In a news release, the company cited several factors for its growth, including increased prices from hog sales because of low supplies resulting from the outbreak of the porcine epidemic diarrhea virus, or PEDV; the occurrence of Easter in April, and Smithfield's agreement with Nathan's Famous to be its exclusive licensee to make and sell Nathan's hot dogs and other products.

In a statement, C. Larry Pope, the company's president and CEO, reported that Smithfield was selling products in 21 kiosks in China as of July. "The early success of our Smithfield kiosks in China underscores the synergistic effect of our merger with WH Group," Pope said.

In his statement, Pope predicted "enormous growth potential for our U.S. business..., particularly in packaged meats."

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(c)2014 The Virginian-Pilot (Norfolk, Va.)

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Source: Virginian-Pilot (Norfolk, VA)


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