Thread: Swift earnings up 84 percent

http://www.greeleytrib.com/article/2006 ... S/61004003
Swift earnings up 84 percent

Staff Reports
October 4, 2006

Swift & Co. has reported an 84 percent increase in first-quarter earnings before interest, taxes, depreciation and amortization largely due to higher beef prices and a greater volume of beef sales.

The Greeley based company, the world’s second largest processor of fresh beef and pork products, reported net sales of $2.4 billion for its fiscal quarter which ended Aug. 27, up 7.7 percent from the year before. The increase was the result of about a 12 percent sales gain in the beef unit and a 4.5 percent gain in pork.

The results were the best for Swift since December 2003, when countries banned U.S. beef when the first case of mad cow disease was reported in the U.S., said Sam Rovit, Swift & Co.'s president and chief executive officer.

“Our strategy delivered results this past quarter,” Rovit said, contributing the efforts of the company’s 20,000 worldwide employees for the improvements.

“While we are encouraged by our first quarter results, we recognize that a full U.S. beef market recovery may take some time to play out,” Rovit said.

Most bans on U.S. beef have largely been lifted, but some countries, like Japan, continue to restrict the age and type of U.S. beef they will buy to protect against the disease.

Swift beef's fiscal first-quarter earnings increased to $36 million from $4 million a year ago. Net sales for the unit were up about 12 percent at $1.57 billion compared with $1.4 billion a year ago, due to higher selling prices and sales volumes.

The pork unit's first-quarter earnings declined to $12 million from $16 million a year ago, due in part to higher fuel and packaging costs and to professional and consulting fees.

Pork sales increased to $546 million compared with $523 million a year ago, helped by higher selling prices and sales volumes. The increases in selling prices were attributable to stronger-than-usual seasonal demand for pork both domestically and internationally.

With earnings like that, they can afford a 3% pay raise for their workers and million dollar bonus for the CEO.

Wonder what percentage of their workforce is illegal?

See April's article
http://www.alipac.us/modules.php?name=F ... highlight=