Smithfield Foods Q4 Profit Surges

(RTTNews) - Smithfield Foods Inc., a wholly owned subsidiary of WH Group Limited (WGHPY.PK), reported that its fourth-quarter net income surged to $556.1 million, from $120.7 million last year.

The company stated that its performance in the bacon category with its Smithfield brand was particularly robust with strong double-digit gains in volume, market share and distribution.

The company also said it benefited from a favorable operating environment with tight supplies and strong demand both domestically and internationally, which resulted in very robust hog production earnings.

Consolidated operating profit rose 102% to $224.9 million from last year. Packaged Meats operating profit increased by 59%, Hog Production operating profit surged by 263%, while international operating profit increased by 76%.

Quarterly sales grew to $4.09 billion from $3.89 billion in the prior year.

"PEDv has not been a major issue this fall, but the virus does remain a potential wildcard going forward. We expect US market hog supplies to rebound in 2015, although lower prices and reduced energy costs should generate additional demand in the export markets, as well as domestically. Lower pork prices should also allow us to leverage additional synergistic opportunities with WH Group and Shuanghui, our sister company in China," said Larry Pope, president and chief executive officer said.

"Bottom line, we are sharply focused on growth and believe that Smithfield is in an ideal position to continue to achieve strong results in 2015," Pope concluded.