A profitable quarter for Smithfield Foods

For the first time since 2008, Smithfield Foods is reporting a quarterly profit. For the quarter ended January 31, the nation’s largest hog producer reports net income was $37.4 million, or 22 cents per diluted share, compared with a loss of $107.5 million, or 74 cents per share, in the same quarter of 2009. Sales fell 14 percent to $2.88 billion due, in part to the quarter being a week shorter than last year and the closing of several plants.

Packaged meat sales for the quarter were $145.3 million compared to $115.9 million a year ago. That was more than enough to offset fresh pork sales which dropped from $13.5 million to $7.5 million.

Smithfield’s hog production unit was able to reduce losses in the third quarter from $253.6 million a year ago to $55.6 million this year. CEO Larry Pope says the ongoing restructuring of the pork business will be completed in April with the closing of the John Morrell plant in Sioux City. He also believes the reopening of the Russian market and hopefully China will help put the division back in the black.

Read the quarterly report here: