April 10, 2007

Swift posts US$48.6 million loss as beef sales decline
 

Swift & Co., the third-largest US beef and pork producer, said it had a net loss of $48.6 million in the quarter ended February 25 as beef sales plunged.

A net loss of US$49.4 million was also posted in the fiscal third quarter the Greeley, Colorado-based Swift announced during a filing with the US Securities and Exchange Commission.

The company's overall sales fell 6.9 percent to US$2.09 billion.

Closely held Swift has had just one-profitable quarter since November 2004, reflecting a drop in beef exports because of restrictions imposed by importers after the first case of mad-cow disease in the US late 2003. Beef sales in the recent quarter fell 16 percent to US$1.l6 billion while revenue from the company's pork and Australian operations increased.

Swift said in the filing that the company's revenues and net income may persist to be affected due to continued import restrictions.

Swift in January said that it was considering "selling itself" as well as "merger, strategic partnerships or refinancing" after receiving unsolicited inquiries during the previous six months.

Tyson Foods, Cargill and Smithfield were all said to be possible buyers for some of Swift's assets, according to Cattle Buyers Weekly, a cattle industry newsletter.