(GuruFocus, June 20, 2009) Investment Guru Steve Mandel bought into meat processing company Smithfield Foods Inc. (SFD, Financial). GuruFocus Real Time Data shows that Steve Mandel bought 126,367 shares of SFD on June 9 at the price of $12.16 per share. This is a new holding for Steve Mandel.
Smithfield Foods Inc. is one of the world's largest pork processors and hog producer. Smithfield Foods conducts its business through two groups the Meat Processing Group and the Hog Production Group. The Meat Processing Group produces domestically and internationally a wide variety of fresh pork and processed meat products and markets them nationwide and to foreign markets. The company has vertically integrated into hog production through its Hog Production Group which provides the Meat Processing Group with its live hog requirements. Smithfield Foods Inc. has a market cap of $1.84 billion; its shares were traded at around $12.84 with and P/S ratio of 0.1. Smithfield Foods Inc. had an annual average earning growth of 1.9% over the past 10 years.
On June 16,2009, the company reported its fourth fiscal quarterly and annual results. Highlights are:
Fourth Quarter
Fiscal Year
Besides Steve Mandel, another Investment Guru, D avid Einhorn owns 239,263 shares as of 03/31/2009.
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Smithfield Foods Inc. is one of the world's largest pork processors and hog producer. Smithfield Foods conducts its business through two groups the Meat Processing Group and the Hog Production Group. The Meat Processing Group produces domestically and internationally a wide variety of fresh pork and processed meat products and markets them nationwide and to foreign markets. The company has vertically integrated into hog production through its Hog Production Group which provides the Meat Processing Group with its live hog requirements. Smithfield Foods Inc. has a market cap of $1.84 billion; its shares were traded at around $12.84 with and P/S ratio of 0.1. Smithfield Foods Inc. had an annual average earning growth of 1.9% over the past 10 years.
On June 16,2009, the company reported its fourth fiscal quarterly and annual results. Highlights are:
Fourth Quarter
Net loss was $78.8 million ($.55 per diluted share) versus net income of $2.4 million ($.02 per diluted share) in the prior yearLiquidity in excess of $1.1 billion; all financial covenants were metPackaged meats continued to achieve record marginsHog production losses continued; raising costs expected to begin to moderateExport volume remained strongA(H1N1) virus had no significant effect on the quarter
Fiscal Year
Net loss was $190.3 million ($1.35 per diluted share) versus net income of $128.9 million ($.96 per diluted share) last yearSales increased over $1.1 billion, or 10%, from the previous fiscal year (including the effect of an extra week in fiscal 2009) Hog production suffered substantial losses due to record high feed costs Packaged meats achieved record profits Export sales achieved record profits Debt was reduced by over $890 million from the previous fiscal year, lowering debt to capitalization to 53% Cash flows from operations totaled more than $269 million, despite heavy losses in hog production Year-to-date capital expenditures were 62% lower than last yearReduced our U.S. sow herd by 10%Initiated Pork Group restructuring designed to improve pre-tax results by $55 million in fiscal 2010 and $125 million in fiscal 2011; current results included pre-tax restructuring charges of $88.2 million ($.40 per diluted share) Groupe Smithfield merged with Campofrio; ownership stake raised to 37%Completed sale of beef processing and cattle feeding operations for $575.5 million, recording a pre-tax gain of $99.7 million
Besides Steve Mandel, another Investment Guru, D avid Einhorn owns 239,263 shares as of 03/31/2009.
GuruFocus provides Real Time Guru Picks and Insider Buys/Sells information for Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
