Premium Standard 3Q earnings drops |
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Thu, 01 Feb 2007 14:06
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KANSAS CITY, Mo. (AFX) - Premium Standard Farms Inc., a hog producer and pork processor, on Thursday said fiscal third-quarter net income dropped 79 percent, hurt by lower volume due to hog health problems and charges related to its merger with Smithfield Foods.Quarterly income fell to $2.9 million, or 9 cents per share, from $13.8 million, or 44 cents per share during the prior-year quarter. Excluding costs related to its takeover by Smithfield Foods, Premium Standard made 18 cents per share.In a deal announced in September, Smithfield Foods will buy Premium Standard for about $674 million in cash and stock. Smithfield will also assume about $117 million of Premium Standard's debt.Revenue dropped 8 percent to $224.3 million, from $242.9 million. Total volume declined by $22.4 million due mainly to health-related issues in the company's hog herds, offset somewhat by higher lean hog and wholesale pork prices.The company raised the number of vaccinations it is giving to treat the Porcine Circovirus, which has hurt its hogs in previous quarters, but said it will not see the benefits of the vaccinations until the fourth quarter.The virus causes nervous system and reproductive problems in pigs.Premium Standard shares closed at $19.02 Wednesday on the Nasdaq.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Standard Life's Q4 sales dip 12% 