Food Business News - December 20, 2011 - (Page 20)

Smithfield Foods income falls 16% in second quarter Retail brands post strong results while food service performance lags co company had sales of $3,312.6 million, up 10 10% from $2,998.8 million. “Our business is thriving, and we are proud to deliver yet another quarter of quality and consistent earnings to our shareholders led by strong results in our Pork segment,” said C. Larry Pope, p president and chief executive officer. “ “Importantly, we were able to grow the top l line in our packaged meats business in the s second quarter — while exhibiting strong pr pricing discipline to maintain margins in the no normalized range — by leveraging our closely co coordinated sales and marketing pl platform to expand share and di distribution. Our Farmland, Smithfield, Armour and Curly’s brands all achieved double-digit retail sales and volume growth in the quarter.” h In a conference call with financial analysts on Dec. 8, me Mr. Pope said that the volume y’s growth in the company’s Packaged Meats segment is partially related to the company’s brands, which were up 5% in many cases. He added, however, that the volume growth has been offset by weakness in food service. “I had reported to you in the last quarter that I thought food service was coming back,” he said. “We continue to see some weakness even as we came deeper into the second quarter. Our food service business, and I think others are reporting as well, that the food service business is not as strong and that is adversely impacting our overall volume.” Mr. Pope also said Smithfield Fo Foods has broken ground on a new hot dog processing facility that will be located adjacent to the company’s cooked meats facility in Kinston, N.C. The facility is s scheduled to be operational d during the first calendar q quarter of 2013 and will have th the capacity to process up to 30 million lbs of product per year. Th The company is also close to announcing the opening of its innovation center in Smithfield, Va., Mr. Pope said. “It’s not some Taj Mahal,” he said. “We don’t have big, big money invested in this. We took a smaller plant, renovated it, built an innovation center around it, but it’s the foundation for us.” For the six months ended Oct. 30, the company had income of $202.8 million, or $1.24 per share, down 8% from $220 million, or $1.33 per share, during the same period of the previous year. Sales for the six months were $6,406.8 million, up 9% from $5,900.1 million. “Our fresh pork and hog production businesses continued to benefit from a balanced domestic supply and demand dynamic, as well as very strong exports,” Mr. Pope said. “Pork exports continued their upward trajectory, fueled by strong gains in shipments to Asia. Although we were disappointed in the performance of our international businesses, we were pleased with the sequential improvement in that segment from last quarter in the face of continued high raw material costs and soft demand in Europe.” FBN SMITHFIELD, VA. — Increased costs and a difficult prior-year comparison led income lower at Smithfield Foods, Inc. in the second quarter. For the quarter ended Oct. 30, the company had income of $120.7 million, equal to 74c per share on the common stock, down 16% from $143.7 million, or 87c per share, during the same quarter of the previous year. During the quarter the The Didion Difference Meals • Flours • Binders • Fiber High Quality Corn Products for the Food Industry… 20 FOODBUSINESS NEWS ® December 20, 2011

Table of Contents for the Digital Edition of Food Business News - December 20, 2011

Food Business News - December 20, 2011
Government to decide on B.P.A. ban by March 31
Dairy Business News - Higher prices lead to sluggish fresh milk sales
Commodity, ingredient prices trending lower at year end
Editorial - Food revolution in wake of food truck growth
Food companies alleging egg price fixing from 1999 to 2008
Nestle details progress made on nutrition front
NPD Group: Restaurant traffic flat in 2011
Yum! raises guidance on global strength
Coca-Cola forms partnerships to develop 100% plant-based bottles
Lempert sees economizing as key trend in 2012
Blount buys Cape Cod Chowder Co.
Falconhead Capital acquires Rita’s Water Ice Franchise
Better margins seen in 2012
Sara Lee to buy Dutch cafe store operator
Sara Lee to base North American Meats in Chicago
Clearer picture of local food
Smithfield Foods income falls 16% in second quarter
Earnings filing delay for Diamond Foods
Health and Wellness - Researchers shed light on probiotics benefits
Ingredient Innovations - Oils factor into french fry innovation
Dairy Business News - Dairy Ingredients Symposium to be held in March
Dairy Business News - Cultures increase cottage cheese yield
Dairy Business News - WhiteWave moves ahead on sustainability initiatives
Dairy Business News - Steve Millard to lead Emmi Roth USA
Dairy Business News - October nonfat dry milk output down 12% from year ago
New Product Trends - Local foods, children's nutrition top N.R.A. trends
New Product Trends - Niman Ranch introduces all-natural beef entrees
New Product Trends - Pamela’s Products launches Whenever Bars
New Product Trends - Mission Foods adds Artisan Style Tortillas
New Product Trends - Sunsweet launches Plum Amazins
Food Ingredients Europe
Ingredient Market Trends
Ingredient Markets
Supplier Innovations and News - Cocoa production method wins Fi Europe honor
Supplier Innovations and News - System reduces acrylamide level in coffee
Supplier Innovations and News - Kalsec introduces specialty flavors
Supplier Innovations and News - Vitiva launches Sweet’nVit stevia brand
Supplier Innovations and News - Spicetec hires technical services specialist
Supplier Innovations and News - Ingredient adds shelf life, works in flavor system
Ad Index
Food Business in the News

Food Business News - December 20, 2011