American meat production company Smithfield Foods, Inc. has reported net income of $24.6 million for the first quarter of fiscal 2007 versus net income of $49 million last year. Sales were $2.8 billion, compared with $2.9 billion last year.

Operating profit in the beef segment was slightly below last year as improved results in beef processing on lower cattle costs and higher demand were more than offset by losses related to the company’s cattle feeding investments. As a result of the lower cattle markets, the cattle feeding investment reported a loss of $8.4 million versus a profit of $5.6 million last year.

Chairman and chief executive officer Joseph Luter said, “The Sara Lee European Meats business, acquired through a joint venture, will give Smithfield a much stronger presence in the Western European processed meats market. Also, the ConAgra Refrigerated Meats transaction in the second quarter will accelerate our expansion initiatives in processed meats in the United States.”

Smithfield’s Beef Group subsidiary accounts for approximately 20% of nearly $10 billion in overall annual sales.