Last week, Smithfield Foods announced it lost $4.2 million in the company’s second fiscal quarter report, ending Oct. 27.
According to The Virginian-Pilot, sales during the quarter rose to $3.4 billion from $3.2 billion in the same time frame a year before. However, the company blamed decreased operating profit in its pork segment and costs associated with its recent acquisition by Shuanghui International Holdings Ltd. of China.
A “significant increase” in hog prices was cited in the report as lowering the pork in its pork business from $194.3 million in the third quarter of 2012 to $70.5 million.Read, “Hog prices push Smithfield to $4.2M quarterly loss.”
Meatingplace adds that in addition to the $123.8 million decrease in pork segment operating profit, $52 million in costs as a result of the Shuanghui merger also weighed on the results.
The report is the first released since Shuanghui purchased Smithfield in September.
The $4.7 billion sale was approved by Smithfield shareholders on Sept. 24. More than 96 percent of the votes were cast in favor of the purchase. Starboard Value LP, an investor in Smithfield Foods, Inc., initially tried to derail the deal before droppings its fight.