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Last Update: 04-Sep-12 09:18 ET
Smithfield Foods Slightly Lower Following Earnings/Guidance Results
Smithfield Foods (SFD) reports first quarter earnings of $0.40 per share, $0.05 worse than the Capital IQ Consensus Estimate of $0.45; revenues fell 0.1% year/year to $3.09 bln vs the $3.16 bln consensus. The company saw total packaged meats volume increased 4% in the first quarter, with gains across all key trade channels including retail, foodservice and deli.
With regard to its 2013 Outlook, co states: "Despite headwinds in our hog production business, improving fresh pork results combined with robust packaged meats profitability and higher packaged meats volumes, as well as strong international segment profitability should fuel solid results in fiscal 2013.
“We are zeroed in on our packaged meats business and are successfully executing our growth strategy by continuing to utilize our coordinated sales and marketing team approach, focus on our twelve core brands, invest in consumer-focused advertising, and build a strong product innovation pipeline to grow share and distribution...We expect margins to be at the high end of the normalized range with 2-3%>” volume growth in fiscal 2013...In addition, we anticipate operating profits in our international segment to be in the upper half of the normalized range in fiscal 2013."
With regard to its 2013 Outlook, co states: "Despite headwinds in our hog production business, improving fresh pork results combined with robust packaged meats profitability and higher packaged meats volumes, as well as strong international segment profitability should fuel solid results in fiscal 2013.
“We are zeroed in on our packaged meats business and are successfully executing our growth strategy by continuing to utilize our coordinated sales and marketing team approach, focus on our twelve core brands, invest in consumer-focused advertising, and build a strong product innovation pipeline to grow share and distribution...We expect margins to be at the high end of the normalized range with 2-3%>” volume growth in fiscal 2013...In addition, we anticipate operating profits in our international segment to be in the upper half of the normalized range in fiscal 2013."
