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Smithfield Foods Inc. Reports Operating Results (10-Q)

December 06, 2012 | About:
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10qk

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Smithfield Foods Inc. (SFD) filed Quarterly Report for the period ended 2012-10-28.

Smithfield Foods, Inc. has a market cap of $3.34 billion; its shares were traded at around $22.935 with a P/E ratio of 9.8 and P/S ratio of 0.3. Smithfield Foods, Inc. had an annual average earning growth of 11.7% over the past 5 years.

Highlight of Business Operations:

The global settlement, was not materially different than the accrual we maintained for the settled litigation and, therefore, did not materially affect our profits or losses in the second quarter of fiscal 2013. Payments made by us under the global settlement and payments we received from the insurance carriers are included in our cash flows from operations for the six months ended October 28, 2012.

In the first quarter of fiscal 2012, we made a decision to permanently idle certain farm assets in Missouri. Depreciation estimates were revised to reflect the shortened useful lives of the assets. As a result, we recognized accelerated depreciation charges of $3.2 million and $7.5 million in cost of sales for the three and six months ended October 30, 2011, respectively. These charges are reflected in the Hog Production segment. These assets were fully depreciated by the end of the third quarter of fiscal 2012.

Fiscal 2013 operating profit includes gains of $55.2 million compared to $3.6 million in fiscal 2012 on derivative contracts that are not reflected in the average live hog prices and raising costs presented in the table above; primarily lean hog derivative contracts and grain derivative contracts that are not designated in hedging relationships for accounting purposes.

Fiscal 2013 operating profit includes gains of $63.3 million compared to $34.0 million in fiscal 2012 on derivative contracts that are not reflected in the average live hog prices and raising costs presented in the table above; primarily lean hog derivative contracts and grain derivative contracts that are not designated in hedging relationships for accounting purposes.

Accounts receivable increased $115.5 million mainly due to seasonal sales trends in the Pork segment. Ham sales volumes were significantly higher in October compared to April in anticipation of the Thanksgiving holiday.

Read the The complete Report

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