-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GNZ6Ytj2fnM2XPKpdvEagBh64ZxW2t7ACQa81Fv5b0oCg3fvsho3O4yM7tvEHkwN MvDy3pE7tMFPDx8B/xcS1g== 0001193125-03-008104.txt : 20030604 0001193125-03-008104.hdr.sgml : 20030604 20030604081054 ACCESSION NUMBER: 0001193125-03-008104 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030604 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030604 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SMITHFIELD FOODS INC CENTRAL INDEX KEY: 0000091388 STANDARD INDUSTRIAL CLASSIFICATION: MEAT PACKING PLANTS [2011] IRS NUMBER: 520845861 STATE OF INCORPORATION: VA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15321 FILM NUMBER: 03731226 BUSINESS ADDRESS: STREET 1: 200 COMMERCE STREET STREET 2: EXECUTIVE OFFICE BUILDING CITY: SMITHFIELD STATE: VA ZIP: 23430 BUSINESS PHONE: 7573653000 MAIL ADDRESS: STREET 1: 200 COMMERCE STREET STREET 2: EXECUTIVE OFFICE BUILDING CITY: SMITHFIELD STATE: VA ZIP: 23430 FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY EQUITIES CORP DATE OF NAME CHANGE: 19710221 FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY REAL ESTATE TRUST DATE OF NAME CHANGE: 19661113 8-K 1 d8k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): June 4, 2003 -------------- SMITHFIELD FOODS, INC. (Exact name of registrant as specified in charter) Virginia 1-15321 52-0845861 (State or other (Commission (IRS Employer jurisdiction of incorporation) File Number) Identification No.) 200 Commerce Street Smithfield, Virginia 23430 (Address of principal executive offices)(Zip Code) Registrant's telephone number, including area code: (757) 365-3000 ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits. Exhibit Number Description - ------ ----------- 99.1 Press release, dated as of June 4, 2003. ITEM 9. REGULATION FD DISCLOSURE Smithfield Foods, Inc. (the "Registrant") hereby furnishes this report pursuant to Item 12 of Form 8-K in accordance with SEC Release No. 33-8216: On June 4, 2003, the Registrant issued a press release announcing its results of operations for the fiscal year ended April 28, 2003. The information contained in the press release, which is attached as Exhibit 99.1 to this report, is incorporated herein by reference. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SMITHFIELD FOODS, INC. (Registrant) By: /s/ DANIEL G. STEVENS ---------------------- (Signature) Daniel G. Stevens Vice President and Chief Financial Officer Dated: June 4, 2003 EX-99.1 3 dex991.txt PRESS RELEASE, DATED AS OF JUNE 4, 2003. EXHIBIT 99.1 FOR IMMEDIATE RELEASE Smithfield Foods Reports Fourth Quarter Results Smithfield, Virginia (June 4, 2003)--Smithfield Foods, Inc. (NYSE: SFD) today announced earnings for the fourth quarter of fiscal 2003, ended April 27, of $5.1 million, or $.05 per diluted share, versus $24.9 million, or $.22 per diluted share, last year. Fiscal 2003 fourth quarter results included a $2.2 million pre-tax, or $.01 per diluted share, charge for bad debt reserves associated with the bankruptcy of Fleming Companies. Fourth quarter sales of $1.9 billion were about the same as last year. The company has adopted a new method of segment reporting. The Meat Processing Group has been eliminated and Smithfield now will report results of the pork, beef and international segments, as well as hog production. Following are the company's sales and operating profit by segment:
13 Weeks Ended 52 Weeks Ended -------------- -------------- (in millions) Apr. 27, 2003 Apr. 28, 2002 Apr. 27, 2003 Apr. 28, 2002 ------------- ------------- ------------- ------------- Sales - ----- Pork $ 1,059.3 $ 1,061.6 $ 4,286.0 $ 4,540.3 Beef 543.6 550.7 2,165.2 1,286.1 International 318.8 304.6 1,304.6 1,254.5 Hog Production 304.1 276.3 1,059.8 1,265.3 ---------- ---------- ---------- ---------- 2,225.8 2,193.2 8,815.6 8,346.2 Intersegment (276.9) (230.1) (911.1) (990.1) ---------- ---------- ---------- ---------- Total Sales $ 1,948.9 $ 1,963.1 $ 7,904.5 $ 7,356.1 ========== ========== ========== ========== Operating Profit - ---------------- Pork $ 49.1 $ 51.5 $ 184.6 $ 163.8 Beef 17.5 0.3 77.4 10.0 International 3.7 7.6 38.7 24.2 Hog Production (25.1) 17.1 (108.4) 266.6 Corporate (17.3) (15.3) (59.1) (59.5) ---------- ---------- ---------- ---------- Total Operating Profit $ 27.9 $ 61.2 $ 133.2 $ 405.1 ========== ========== ========== ==========
Fourth Quarter Results The results for the quarter reflected strong profitability in beef and processed meats, which somewhat offset the continuing environment of low hog prices and weak fresh pork prices. 2 In the pork segment, fresh pork volume grew three percent as a result of an increase in the number of hogs processed. Processed meats volume rose seven percent, reflecting significant volume increases in the bacon, ham and sausage categories. The company saw similar volume growth in both retail and foodservice sales, as well as a rise of 23 percent in volume in the newly-formed Smithfield Deli Group. The company's beef operations reported continuing strong earnings, in spite of higher live cattle prices. Beef demand for all processors continues to be high, with beef prices reaching record levels. Internationally, the company's Polish operations recorded sharply improved results, offset by lower earnings in Canada and Mexico. The prior year's quarter reflected exceptionally strong margins in Canada. Hog Production operating profit continued to be down in the current quarter on lower average selling prices and higher raising costs, principally on higher feed costs. "Given the overall adverse environment for both live hogs and fresh pork, I am reasonably pleased with the quarter's results," said Joseph W. Luter III, chairman and chief executive officer. "While we anticipated that our results in the fourth quarter would be better than the third quarter, lingering hog prices in the low to mid 30's for much of the quarter continued to produce losses in our hog production operations. We have and always will focus on building the business for the long term and will not be distracted by short-term market influences," he said. The company noted that it was beginning to implement synergistic changes as a result of the previously-announced merger of Smithfield Packing and Gwaltney. The combination will result in one operating entity with two retail sales divisions and one combined foodservice organization. The merger of these two entities will help maximize their manufacturing capacities, as well as reduce redundant overhead and logistics costs. The major benefits of this merger will begin to be reflected in the second and third quarters of fiscal 2004. Full Year Results For fiscal 2003, Smithfield reported sales of $7.9 billion, seven percent above prior year sales of $7.4 billion. Net income was $26.3 million, or $.24 per diluted share, versus $196.9 million, or $1.78 per diluted share last year. Both years included a gain of one cent per diluted share on unusual items. Pork operating earnings rose 13 percent, a result of substantially improved margins in processed meats that more than offset weak fresh pork margins. Fresh pork volume grew two percent while processed meats volume increased eight percent, with significant volume growth in several product categories. Smithfield Lean Generation Pork volume increased four percent, reaching annual volume of 108 million pounds. Beef operations, acquired in fiscal 2002, reflected a full year of operations, as well as sharply-improved margins versus a year ago. International earnings rose 60 percent, as Animex of Poland experienced its first profitable year under Smithfield ownership, turning around from a substantial loss last year. Schneider of Canada also recorded very strong results. 3 Smithfield's hog production operations experienced a decline in operating profit of $375 million from last year, as live hog prices averaged 21 percent, or $22 per head, below the levels of fiscal 2002 and increased raising costs, primarily related to higher feed costs. Mr. Luter noted that while the past twelve months have been difficult for both fresh pork and hog production, the depth and length of the current hog cycle was not as severe as the prior downturn in 1998 when hog prices dropped to a 50-year low. Generally, fresh pork and hog production are counter-cyclical to one another, although this was not the case in fiscal 2003. Looking forward to the first quarter of fiscal 2004, Mr. Luter said, "The early signs are very encouraging. Live hog prices have risen nearly 30 percent in the past 60 days and fresh pork prices are improving. Although the hog markets are frequently volatile and unpredictable, the futures markets currently are predicting strong live hog markets well into the summer and early fall. Additionally, beef operations are running at near-record profit levels. The combination of a strong beef complex, more normal hog prices, improving fresh meat demand and a very solid processed meats business leads me to be optimistic as we begin fiscal 2004," he said. With annualized sales of $8 billion, Smithfield Foods is the leading processor and marketer of fresh pork and processed meats in the United States, as well as the largest producer of hogs. For more information, please visit www.smithfieldfoods.com. This news release may contain "forward-looking" information within the meaning of the federal securities laws. The forward-looking information may include statements concerning the company's outlook for the future, as well as other statements of beliefs, future plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. The forward-looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. These risks and uncertainties include availability and prices of livestock, raw materials and supplies, livestock costs, product pricing, the competitive environment and related market conditions, operating efficiencies, access to capital, the cost of compliance with environmental and health standards, adverse results from ongoing litigation and actions of domestic and foreign governments. ### (table follows) Contact: Jerry Hostetter Smithfield Foods, Inc. (212) 758-2100 jerryhostetter@smithfieldfoods.com 4 CONSOLIDATED STATEMENTS OF INCOME SMITHFIELD FOODS, INC. AND SUBSIDIARIES 13 Weeks Ended 52 Weeks Ended -------------------- -------------------- (In millions, except Apr. 27, Apr. 28, Apr. 27, Apr. 28, per share data) 2003 2002 2003 2002 - -------------------------------------------------------------------------------- Sales $1,948.9 $1,963.1 $7,904.5 $7,356.1 Cost of sales 1,781.2 1,749.0 7,203.4 6,393.0 - -------------------------------------------------------------------------------- Gross profit 167.7 214.1 701.1 963.1 Selling, general and administrative expenses 139.8 152.9 567.9 558.0 Interest expense 20.8 22.9 94.0 94.3 Gain on sale of IBP common stock - - - (7.0) - -------------------------------------------------------------------------------- Income before income taxes 7.1 38.3 39.2 317.8 Income taxes 2.0 13.4 12.9 120.9 - -------------------------------------------------------------------------------- Net income $ 5.1 $ 24.9 $ 26.3 $ 196.9 ================================================================================ Net income per common share: Basic $ .05 $ .23 $ .24 $ 1.82 Diluted $ .05 $ .22 $ .24 $ 1.78 ================================================================================ Average common shares outstanding: Basic 109.4 110.7 109.6 108.1 Diluted 110.3 113.2 109.8 110.4 ================================================================================ Note: Depreciation expense has been reclassified for all periods into cost of sales and selling, general and administrative expenses, as appropriate. Certain other prior period amounts have also been reclassified to conform to current period presentations. -----END PRIVACY-ENHANCED MESSAGE-----