THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, August 24, 1995 TAG: 9508240498
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: STAFF REPORT
LENGTH: Short : 36 lines
Smithfield Foods Inc. said Wednesday that it lost $4.4 million in its fiscal first quarter, ending July 30.
The Smithfield-based company said higher hog prices squeezed out profits in its meatpacking business and that it was racked by higher-than-expected shutdown costs in a failed consumer-electronics retailing venture.
The net loss, equal to 27 cents a share, compared to net income of $2.4 million, or 13 cents a share, in the same quarter last year.
When only continuing operations were considered, Smithfield lost $2.6 million in the latest quarter. The remainder of the loss, $1.8 million, came from unanticipated problems disposing of the assets of Ed Kelly Inc., a TV and appliance-store chain that turned out to be a dud after Smithfield acquired it several years ago.
Total revenues from continuing operations were $367.3 million in the latest quarter, up 11 percent from $331.8 million a year earlier.
Joseph W. Luter III, Smithfield's chairman and chief executive, said that, despite its problems, the company has some positive developments in the latest quarter.
He said Smithfield posted strong sales of its new ``Lean Generation Pork'' to the food-service industry and has increased its exports of meat products.
But an increase in the number of pork-processing plants is driving up prices that processors must pay for hogs, he noted.
That makes it harder for Smithfield to earn profits. by CNB