SMITHFIELD, Va. — Continued low prices for live hogs and fresh pork products left meat-packing giant Smithfield Foods Inc. with sharply lower earnings for its fourth fiscal quarter.
Smithfield, which owns Circle Four Farms in Utah, is the nation's largest hog producer and pork processor.
It reported net income of $5.1 million, or 5 cents a share, in the quarter that ended April 27, down 80 percent from $24.9 million, or 22 cents a share, in the same quarter last year. Revenue for the quarter fell slightly to $1.95 billion from $1.96 billion a year earlier.
The results beat by a penny a share the consensus estimate of 4 cents a share among Wall Street analysts surveyed by Thomson First Call.
For the full year, Smithfield said earnings totaled $26.3 million, or 24 cents a share, down 87 percent from $196.9 million, or $1.78 a share, in 2002. Revenue for the year rose to $7.90 billion from $7.36 billion a year earlier.
In a statement, chairman and chief executive officer Joseph W. Luter said the company was pleased that its beef and prepared foods operations posted strong results during the quarter, partially offsetting the problems with pork.
"Given the overall adverse environment for both live hogs and fresh pork, I am reasonably pleased with the quarter's results," he said.
Luter noted that hog prices have shown signs of recovering in recent weeks. While hog markets "are frequently volatile and unpredictable," he said, current futures prices suggest continued stronger demand "well into the summer and early fall."