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Smithfield hurt by low prices

by 5m Editor
29 April 2006, at 12:00am

RICHMOND, VA. - Smithfield Foods Inc., the world’s largest pork processor, said Friday it expects its fiscal fourth-quarter earnings to fall far short of Wall Street’s expectations due to plummeting hog prices. The Smithfield, Va.-based company blamed its weakening pork margins on a "protein oversupply" in the U.S. market, which analysts say is actually a glut of chicken products. The spread of avian flu has depressed demand overseas, leading to the bloated supply at home. "The oversupply of chicken is having an effect on other proteins," said William B. Chappell, an analyst with SunTrust Robinson Humphrey. Last week, poultry producer Tyson Foods Inc. predicted a larger-than-expected loss in the second quarter and reduced its guidance for the full year. Source: Wilmington Star

5m Editor