Pork producer's earnings, sales fall
02 February 2007KANSAS CITY - Health issues with its herds contributed to ailing earnings for Premium Standard Farms Inc. in its most recent quarter.
In a release before the market opened Thursday, the Kansas City-based pork producer and processor said third-quarter earnings decreased almost 80 percent from the previous year.
Premium Standard (Nasdaq: PORK) reported earnings of $2.9 million, or 9 cents a share, for the quarter that ended Dec. 23, compared with earnings of $13.8 million, or 44 cents a share, for the same quarter in 2005.
Sales for the quarter were $224.3 million, down 8 percent from $242.9 million the prior year.
CEO John Meyer said that the company increased the number of vaccinations to treat Porcine Circo Virus in its herd but that the company won't realize the benefits until its fiscal fourth quarter.
"We expect to experience improvement in our herd health in the upcoming fourth quarter resulting from the increased vaccinations, but we still expect to produce lower volumes than in the fourth quarter of last year because of health issues," Meyer said in the release.
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Source: Kansas City Business Journal
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