Summary Box: Smithfield posts record 4Q profit

AP News
Posted: Jun 16, 2011 4:05 PM
Summary Box: Smithfield posts record 4Q profit

BIG TURNAROUND: Smithfield reported net income of $98.4 million, or 59 cents per share, for the three months ended May 1. That compares with a net loss of $4.6 million, or 3 cents per share, a year ago. It was the first full fiscal year when Smithfield reported a profit since 2008.

HIGHER PRICES: Stronger demand let Smithfield charge more for its pork products, helping offset higher feed costs. Lower U.S. hog inventories also led to a 19 percent increase in live hog prices.

STOCK BUYBACK: The company also announced a $150 million stock buyback. CEO C. Larry Pope said the move signifies the company thinks its stock is trading below its real value.