One of the companies widely viewed as being most vulnerable to the economic impact of swine flu posted better than expected results this morning. We’re talking about Smithfield Foods, which today released quarterly results that showed a smaller than expected loss and better than anticipated margins.
Swine flu had no impact on the quarter, the company said. Sales were diminished by the recession, but the pachaged meats unit had record earnings. Feed costs were high, weighing down results.
The company warned that swine flu would likely have an impact on the current quarter, which began May 4th. International sales are down, particularly to China, due to swine flu driven import restriction.
The company also said it was making progress refinancing its debt, reducing it by $890 million. It now says it has $1.1 billion in liquidity.
- Quarterly Loss: $78.8 milion, or 55 cents per share. Analysts had expected a loss of 62 cents per share. (Last year the company saw a $2.4 million profit, or 2 cents er share.)
- Quarterly Revenue: Ticked down to $2.85 billion, from $2.87 billion a year ago.