041156 Smithfield Foods Raises Outlook

Smithfield, VA - Smithfield Foods Inc. raised its second-quarter forecast, saying it expected significantly higher earnings because of a 30% increase in live hog prices and improved pork processing margins in October.

The pork processor said it expected to report earnings of 50 cents to 52 cents per share on Nov. 30, up from 29 cents per share in the same quarter a year ago.

Analysts surveyed by Thomson First Call had a consensus estimate of 45 cents per share.

With annual sales of $10 billion, Smithfield Foods is the leading processor and marketer of fresh pork and processed meats in the United States, as well as the largest producer of hogs.

Joseph W. Luter, III, chairman and chief executive officer, previously has said he expects this fiscal year to be a record year for Smithfield Foods.

On the New York Stock Exchange, Smithfield shares rose $1.16, or 4.4%, at $27.58 - near the middle of their 52-week trading range of $20.10 to $31.15.

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