April 13, 2010

US's National Beef Co. raises Q2 profit

National Beef Packing Co., one of US's largest beef processors, reported profits of US$19 million during its fiscal second quarter on lower costs and steady beef demand and cattle prices.

For the quarter ended Feb 27, the Kansas-based packer posted net earnings of US$49.3 million, compared US$30.5 million in the same period last year. Sales rose 3.3% to US$1.34 billion due to an increase in cattle processed and higher sales prices.

The company said in a filing with the Securities and Exchange Commission that total costs and expenses of about US$1.28 billion for the most recent quarter were 95.8% of sales, compared with the comparable quarter last year in which US$1.26 billion in total costs and expenses represented 96.9% of sales.

"Continued stable demand for beef products and relative stability in cattle prices during the second quarter of fiscal 2010 allowed sales prices to cover the cost of the cattle we processed," the company said in its filing.

Beef prices have responded positively since the start of the year on weather, fewer cattle, improved exports and fewer imports. Global demand for beef and beef by-products is expected to continue to improve on gradual economic gains and reduced production, according to industrial analysts