Smithfield Foods Inc., the largest U.S. pork supplier, raised its full-year profit forecast as a rebound in its hog business offset the impact of tariffs.
Rising U.S. hog prices this year due to tight supply have helped boost profits for suppliers who have benefited from low feed costs. Virginia-based Smithfield has streamlined its hog production operations to focus on its more profitable packaged food business, closing unprofitable farms and transferring some of its breeding operations to a new venture.
CEO Charles Shane Smith said Smithfield, the maker of Farmland bacon and Farmer John sausage, minimized the impact of China's tariffs on U.S. pork exports by developing alternative markets and subsequently resumed shipments to the Asian country.
"While we are not completely immune to tariffs, we have built flexibility into our systems and opened multiple sales channels for our fresh pork products," Smith said on a conference call with analysts.
The return to profitability in the hog business is the primary driver of the company's improved outlook. Smithfield now expects adjusted operating profit of between $1.15 billion and $1.35 billion in 2025, a $50 million increase at the midpoint from its previous guidance, according to a statement Tuesday.
Smithfield's shares fell 0.7% as of 10:19 a.m. in New York, extending their decline after hitting a record high last week.
Rising U.S. hog prices this year due to tight supply have helped boost profits for suppliers who have benefited from low feed costs. Virginia-based Smithfield has streamlined its hog production operations to focus on its more profitable packaged food business, closing unprofitable farms and transferring some of its breeding operations to a new venture.
CEO Charles Shane Smith said Smithfield, the maker of Farmland bacon and Farmer John sausage, minimized the impact of China's tariffs on U.S. pork exports by developing alternative markets and subsequently resumed shipments to the Asian country.
"While we are not completely immune to tariffs, we have built flexibility into our systems and opened multiple sales channels for our fresh pork products," Smith said on a conference call with analysts.
The return to profitability in the hog business is the primary driver of the company's improved outlook. Smithfield now expects adjusted operating profit of between $1.15 billion and $1.35 billion in 2025, a $50 million increase at the midpoint from its previous guidance, according to a statement Tuesday.
Smithfield's shares fell 0.7% as of 10:19 a.m. in New York, extending their decline after hitting a record high last week.