June 7, 2007

Smithfield fails to meet earning expectations

US biggest pig producer Smithfield Food is seen to report its fiscal 2007 fourth quarter income lower than the expected in the range of US$.30 to US$.35 cents per share, coming in under predictions from Wall Street analysts of US$.44 cents per share.

The company says low earnings are due to higher costs in its hog production operations and losses in its cattle feeding business.

Residents of Sioux Falls in South Dakota are also anxious about the financial health of Smithfield as the company's proposed US$100 million expansion of its Morrell plant in Sioux Falls has now been put on hold.

Whether or not the expansion will go ahead or be cancelled has yet to be decided.