A doubling of its pork profits has boosted third-quarter earnings at US meat processor Smithfield Foods.
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The company today (28 February) posted a 34% jump in operating profit to US$166.3m for the three months to 27 January. Revenue climbed 15.6% to $3.8bn.
Underlying net income reached $59.1m, down from $62.1m a year ago, due to changes in Smithfield’s tax rate.
The rise in operating profit came despite a fall in earnings from Smithfield’s international business. Groupe Smithfield, the company’s European business, saw sales and margins slide due to fierce competition in France and the Netherlands.
In the US, the company said last year’s acquisition of Premium Standard Farms had led to its pork profits more than doubling.
“We enjoyed very strong fresh pork margins that were much higher than historical levels as a result of lower hog costs and strong industry exports,” said president and CEO Larry Pope.
However, margins from Smithfield’s beef business were hit due to a weak sector, while it incurred a loss from its hog operations.
