Smithfield hurt by low prices

by 5m Editor
29 April 2006, at 12:00am

RICHMOND, VA. - Smithfield Foods Inc., the world’s largest pork processor, said Friday it expects its fiscal fourth-quarter earnings to fall far short of Wall Street’s expectations due to plummeting hog prices. The Smithfield, Va.-based company blamed its weakening pork margins on a &quot;protein oversupply&quot; in the U.S. market, which analysts say is actually a glut of chicken products. The spread of avian flu has depressed demand overseas, leading to the bloated supply at home. &quot;The oversupply of chicken is having an effect on other proteins,&quot; said William B. Chappell, an analyst with SunTrust Robinson Humphrey. Last week, poultry producer Tyson Foods Inc. predicted a larger-than-expected loss in the second quarter and reduced its guidance for the full year. <em>Source: Wilmington Star</em>

5m Editor