THE VIRGINIAN-PILOT Copyright (c) 1994, Landmark Communications, Inc. DATE: THURSDAY, June 9, 1994 TAG: 9406090538 SECTION: BUSINESS PAGE: I1 EDITION: FINAL SOURCE: By PHIL MURRAY, STAFF WRITER DATELINE: 940609 LENGTH: Medium
The Smithfield-based meatpacker posted better-than-expected results in the three-month period that ended May 1 - the company's fourth fiscal quarter - thanks in part to more efficient production at new and existing plants.
{REST} It was the second straight strong quarter for Smithfield, which had suffered through two years of depressed earnings.
Investors were pleased: Smithfield stock closed Wednesday at 24 3/4, up 1. And analysts are upbeat about the company's future.
``The company has clearly turned the corner,'' said George F. Shipp, a stock analyst in the Norfolk office of Scott & Stringfellow Inc., the Richmond-based brokerage.
In the most recent period, Smithfield's net income soared to $7.4 million, up from $536,000 in the same quarter a year ago.
For the entire fiscal year, the company's net income was $19.7 million, a fivefold increase from the previous year. Sales for the year increased 26 percent to $1.45 billion.
The difference, companies officials said, was improved efficiencies at the new Bladen County, N.C., hog-slaughtering plant and fatter profits on fresh pork and processed meats. The $76 million plant, which opened in October 1992, had been a drag on earnings while it worked out kinks.
Assuming stable industry conditions, the company expects ``significant improvement'' over 1994 in the current year's financial results.
Shipp agreed.
``Our hope is that this is the second in a series of up quarters. I think there's still room for improvement.''
by CNB