February 21, 2005

Higher live hog prices to help double Smithfield Foods' Q3 profit

The stock of Smithfield Foods Inc. increased after the company said it expects earnings for the latest quarter will be more than double compared with the previous year. Smithfield Food is the largest producer of live hogs.

The Smithfield-based meat processor said it expects to earn 86 cents US or 87 cents US a share in the fiscal third quarter ended Feb. 1.

The expected doubling of third-quarter earnings is primarily attributable to a 49 per cent increase in live-hog prices compared with the year-ago quarter.

In the third quarter a year ago, Smithfield earned $46.1 million US, or 41 cents a share. Earnings from continuing operations were $42.1 million US, or 38 cents a share.

Smithfield's shares rose $1.61, or 5.2 per cent, to $32.52 in morning trading on the New York Stock Exchange. The shares set a 52-week high of $31.89 on Feb. 4.

The company plans to report third-quarter earnings March 1.