US meat processor Swift and Co reports Q2 profit drop

US - US fresh beef and pork processor Swift and Co has reported a 6-percent drop to US$2.33 billion in its sales for 2006 Q2, from the same quarter last year. Net sales declined in all three business segments in the company.
calendar icon 11 January 2006
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Volume declines in Swift Australia and Swift Beef and a selling price decline in Swift Pork has offset the better selling prices in Swift Australia and Swift Beef and a volume rise in Swift Pork, the company reported.

Swift Australia net sales also benefited from a 2.7-percent rise in the Australian dollar against the US dollar from the previous year period. The company's second quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was US$2 million, compared to US$44 million in the previous year.

Sam Rovit, president and CEO of Swift and Co, said that Swift Australia's profitability continued to fall due to limited local cattle supplies, while Swift Beef's pricing improvements were unable to offset continued high cattle costs and rising energy prices.

Swift Pork, however, managed to sustain its profitability despite a 5-percent net sales decline, he added.

Fortunately, the recent opening of several important Asian markets such as Japan, Hong Kong and Thailand, Rovit added, is a positive long-term catalyst for the US beef industry. The company now hopes to return to its previous export sales and volume levels.

Source: eFeedLink - 11th January 2006

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