RICHMOND, Va. (AP) — Smithfield Foods Inc. said Thursday that its second-quarter net income fell on charges for early debt payoff, but its adjusted earnings beat Wall Street expectations as the world's biggest pork producer saw gains in its packaged meats and international business.
The Smithfield, Va.-based company, whose brands include Armour, Farmland and its namesake, reported earnings of $10.9 million, or 7 cents per share, for the three months ended Oct. 28, down from $120.7 million, or 74 cents per share, a year ago.
Smithfield said the early debt buyback resulted in a charge of $120.7 million. Adjusted earnings were 61 cents per share, beating analyst expectations of 45 cents per share.
Revenue fell about 3 percent to $3.23 billion as higher volumes were offset by lower meat and hog prices. Analysts polled by FactSet expected $3.31 billion.
The company said its volumes in its packaged meats business such as deli meats, bacon, sausage, and hot dogs, rose 2 percent during the quarter and its profit margins grew.
CEO C. Larry Pope said he expects the Smithfield's packaged meats business to "continue to lead the way."
Its fresh pork business rebounded in the second quarter after it saw higher supplies and weak U.S. retail demand in the first quarter, the company said.