US meat processor Smithfield Foods Inc. has reported improved income and sales for the fourth quarter and full year.

For the fourth quarter sales reached $3.1 billion versus $2.7 billion a year ago whilst income improved to $39.9 million from $6.3 million. Beef processing margins improved significantly during the quarter, in spite of limited exports and a shortage of cattle. However, beef processing earnings were more than offset by losses in the company's cattle feeding operations which were depressed by severe winter weather, higher grain prices and higher-priced feeder cattle purchased earlier in the year.

For fiscal 2007, the company reported income of $188.4 million compared with $185.2 million and sales reached $11.9 billion, up from $11.4 billion. Beef processing achieved earnings well above a year ago in spite of unfavourable industry conditions and an $8.2 million impairment charge. These results were partially offset by cattle feeding losses.