Smithfield sees profit decline in Q2
by MEAT+POULTRY staff
In a filing with the Securities and Exchange Commission Smithfield Foods Inc., a subsidiary of China’s WH Group Limited reported net income of $104.2 million during the fiscal second quarter ended June 28, compared to $142.9 million during the same period last year. Sales for Q2 were $3,486.6 million this year versus $3,814.0 during the same time period in 2014.
According to the filing, Smithfield’s net income declined to $201.2 million in the first six months of 2015 versus $248.2 million during the first half of 2014. Meanwhile, sales dipped to $7,103.1 million for the first six months of this year compared to $7,236.1 million in 2014.
In terms of profitability for the quarter, the company reported positive results for its Packaged Meats segment with operating profit surging to $176.3 million compared to $97.5 million during the first quarter of 2014. For the first six months of the year, sales in the Packaged Meats sector were $3,255.2 million versus $3,276.7 the previous year.
Fresh Pork and Hog Production profit suffered significantly in the quarter and for the first six months. Sales in Fresh Pork for the quarter declined to $1,364.5 million this year versus $1,605.8 million last year, with sales for the first six months at $2,698.6 million compared to $2,992.9 million. Likewise, Hog production for the quarter lagged last year’s Q2 operating profit by nearly $90 million, at $14.8 million on sales of $784.6 million compared to last year’s $857 million.
The company has scheduled an Aug. 25 conference call to discuss its Q2 results.