Premium Standard Farms reports lower profits on hog sales

US - Premium Standard Farms Inc., the nation's second-largest pork producer, on Tuesday reported lower third-quarter earnings but still beat Wall Street expectations.

For the three months ending Dec. 24, the Kansas City-based company said it earned $13.8 million, or 44 cents per share, compared with $23 million, or 74 cents per share, during the same period a year ago. Company executives blamed the decline in profits on lower hog prices.

Revenues for the quarter declined 2 percent to $242.9 million from $246.8 million in the year-ago quarter. Analysts surveyed by Thomson Financial expected earnings of 29 cents per share on revenues of $227.6 million.

In a release, company officials said the results met internal expectations and that they expected market conditions for pork to continue to improve this year.

They also said they didn't believe problems with beef exports, caused by continuing concerns over mad cow disease, would affect pork sales overseas.

Source: Belleville News Democrat

9 January 2006