Smithfield Foods down premarket after cutting annual sales forecast
SFD•Smithfield Foods expects annual sales to fall in the low single digits, revising its previous forecast of roughly flat sales, and sharply cut outlooks for its Fresh Pork and Hog Production segments. The company also missed third-quarter sales and profit expectations.
1. Outlook cut
Smithfield Foods expects annual total company sales to decline in the low single digits, compared with its previous projection of roughly flat sales. It cited current macroeconomic challenges, including softer fresh pork and hog commodity markets.
2. Segment forecasts
The company now expects Fresh Pork adjusted operating results to range from a $50 million loss to breakeven, versus its previous forecast of a $180 million to $240 million profit. Hog Production adjusted operating results are expected to range from a $25 million loss to a $25 million profit, compared with a previous projection of a $75 million to $125 million profit. CEO Shane Smith said commodity market pressure in upstream businesses is expected to continue in the fourth quarter. Smithfield also missed third-quarter sales and profit expectations.
