US-based pork producer and processor Smithfield Foods has reported a 62.6% decline in net earnings to $29.7m for the fourth quarter of 2013, compared with $79.5m for the same period a year ago due to rise in feed costs and decline in hog prices as well as decline in exports to China and Russia.
For the period ended 28 April 2013, net sales increased 3.1% to $3.32bn, compared with $3.21bn a year ago.
Smithfield Foods president and chief executive officer C. Larry Pope said: "Driven by both top and bottom line growth in packaged meats, these earnings reflect our continued transformation into a more value-added consumer packaged meats company."
For the full-year, the company posted net income of $183.8m, compared with $361.3m in the last year, while net sales totaled $13.2bn.
Smithfield stated that it continued to deliver consistent growth in its packaged meats business in fiscal 2013, with increased volume and market share and broader distribution of its core brands.
In addition, the company broadened distribution of its core brands in a number of key product categories, including cooked dinner sausage, deli meats, dry sausage, marinated pork, packaged lunchmeat and portable lunches.
The company will continue to execute its strategic growth plan to improve its earnings stream and migrate Smithfield further towards a consumer packaged meats company.
In May, Shuanghui International has agreed to acquire Smithfield Foods in an all-cash deal valued at $7.1bn, including the assumption of net debt.
Shuanghui International is the majority shareholder of Henan Shuanghui Investment & Development, which is a leading meat processing company in China.
Smithfield Foods is a $13bn global food company and leading pork processor and hog producer, employing 46,000 people. In the US, the company is a supplier of packaged meats under brands including Smithfield, Eckrich, Farmland, Armour, Cook's, Gwaltney, John Morrell, Kretschmar, Curly's, Carando, Margherita, and Healthy Ones.