May 1, 2006

Smithfield predicts dire 4th quarter results

Smithfield Foods announced depressed hog prices would cause its fourth-quarter earnings to be way below last year's earnings.

The world's largest hog producer and pork processor said it expects fourth-quarter earnings between zero to US$12 million compared with over US$85 million during the same period last year.

Smithfield said pork margins have plummeted due to oversupply in the US market.