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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

WH Group Posts Lower Earnings

05/07/2019

WH Group based in China, a multi-national producer of pork including the owner of Smithfield Foods of the U.S. reported lower revenue and profit for Q1 of fiscal 2019. The company generated a net profit of $196 million on sales of $5.2 billion. These values were 21 and 6 percent lower respectively than the comparable first quarter of 2018.

The company attributes the decline in profit to a number of factors including reduced margins in the U.S. due to oversupply, losses in China due to African swine fever and the impact of retaliatory tariffs imposed by China in response to duties imposed by the U.S. on imported manufactured items.

For the remainder of 2019, prospects were stated as being more promising as the domestic price of pork in China has risen 40 percent since the outbreak of ASF and is expected to rise a further 30 percent by the third quarter. Profit will however be dependent on the ability of WH Group to maintain a supply of slaughter hogs and possible rescission of import duties on pork sourced from their U.S. and E.U. subsidiaries.


 
Copyright 2019 Simon M. Shane