050520 Smithfield Foods 4th-Qtr Profit Rises

Chicago - Smithfield Foods Inc. reported a 20% rise in quarterly earnings from continuing operations as strong hog prices offset weakness in its beef and pork units.

Smithfield said profit rose to $85.4 million, or 76 cents per share, for its fourth quarter ended May 1, from $71.1 million, or 63 cents per share, a year earlier.

Analysts, on average, expected earnings of 73 cents a share, according to estimates.

Including discontinued operations, year-earlier income was $122.7 million, or $1.09 per share.

This year's results included a one-time gain of $4.4 million, or 3 cents per share, from a legal settlement.

Revenue rose to $2.92 billion from $2.52 billion.

Operating profit in the hog production unit nearly doubled on strong hog prices and lower production costs, offsetting lower results in the pork segment and a loss in the beef unit.

"Looking into the next year, it appears that pork export markets will continue their strong demand, which is good for live hog and pork prices, Meanwhile, we expect the U.S. breeding herd to remain steady," Joseph Luter, Smithfield chairman, said in a statement.

Smithfield has the nation's largest hog herd and sends about 14 million head a year to market.

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