Smithfield Sales, Profits Rise

NEW YORK - Mar 1/05 - SNS -- Smithfield Foods, Inc. reported an operating profit of U.S. $182.8 million on sales of $3,060.1 million during the third quarter ending January 30, a solid improvement on last year's $97.6 million profit on sales of $2,703.7 million.

The results lifted the fiscal year to date operating profit to $414.3 million on sales of $8,430.9 million, compared to a profit of $225.7 million on sales of $6,745 million during the same period of the previous fiscal year.

Growth in the company's pork and hog production divisions overcame falling sales in the beef division. Pork division sales for the quarter were $2,062.3 million, versus $1,844.2 million last year; while the hog production division reported an increase in sales from $340.1 million to $544.3 million. By contrast, the beef division reported a decline in sales from $600 million last fiscal year to $55.16 million this year.

"The substantial increase in earnings is attributable to the continued success of Smithfield's vertically integrated pork operations," the company said in releasing the results, "enabling the company to realize improved profitability during this period of increased livestock cost."

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