Losses at Smithfield Foods
Smithfield Foods, the largest producer of hogs in the US, has reported a net loss of $78.8 million during the fourth quarter compared with net income of $2.4 million in the fourth quarter of 2008. Despite this, the company claims the H1N1 virus had no significant affect on the quarter’s results.
Net loss for the full year was $190.3 million compared with net income of $128.9 million last year.
However, sales for the fourth quarter were $2.9 billion, almost flat with the fourth quarter of 2008. Sales for the full year were $12.5 billion versus $11.4 billion a year ago, up by around 10%.
President and CEO, Larry Pope, said: "2009 was one of the most challenging years in over three decades for the company. We faced grain and oil markets that reached record highs and then fell precipitously. These input dynamics, combined with an oversupply of all proteins as well as a worldwide recession and credit constraints, put significant pressure on the business.
“But despite the challenges we confronted, we did not sit on the sidelines and wait for the economic conditions to improve; we have taken numerous actions to make us a more profitable company: namely, we repositioned the company's operations and made meaningful improvements to our liquidity and financial strength.”
