Swift & Company, the world's second-largest processor of fresh beef and pork products, has reported net sales of $2.4 billion for its fiscal first quarter ended August 28, 2005, down 4% from fiscal first quarter 2005. A continued strong net sales increase in the company's Swift Australia segment was offset by net sales declines in the Swift Pork and Swift Beef segments.

"We experienced challenging market conditions this quarter," said Sam Rovit, Swift & Company's president and CEO. "While we have noted a profitability improvement in Swift Beef, we recognise that the continued lack of access to export markets has impacted the bottom-line performance not just of this business but of the entire domestic beef industry. Swift Australia's profitability declined because of significantly higher raw material costs related to tight local livestock supply."

Swift Beef fiscal first quarter net sales decreased 5% to $1.4 billion compared with $1.5 billion in the prior year. Nominally lower selling prices were accompanied by volume declines associated with competition from lower-priced Canadian boxed beef.

Swift Pork fiscal first quarter net sales declined 13% to $523 million from $600 million in the prior year period. Average selling prices declined 7% and sales volumes declined by 6%.

Swift Australia fiscal first quarter net sales increased 9% to $502 million compared with $460 million in the prior year period. Average selling prices increased 19% and sales volumes declined by 8%. Net sales benefited from a 7.5% increase in the Australian dollar to US dollar exchange rate.