National Beef report higher profits
9 December 2009National Beef Packing have posted a 13% increase in profits this year thanks to reduced cattle purchases, lower cattle prices and other cost cutting, according to a recent filing with the Securities and Exchange Commission.
For the fiscal year ended August 29, the Kansas City based company said net earnings were $149.2 million, compared with $124.5 million in the fiscal 2008, which was one week longer than this year's reporting period. The profit came despite a decrease in sales to $5.45 billion, some $400 million less than total revenues in 2008.
‘The decrease resulted partially from a decrease of approximately 2.5% in the number of live cattle purchased on a per week basis in addition to the additional week in fiscal year 2008’, the company stated in its filing. ‘Also contributing to this decrease was a lowering of live cattle prices of approximately 7.4%.’ Operating income was $174.7 million for fiscal year 2009, a 12.9% increase over 2008, primarily resulting from increased profitability from sales of commodity beef products, exports and value-added products. Improved profitability in commodity beef sales primarily resulted from better demand relative to the price of cattle, the company said.
National Beef includes a tanning division known as National Beef Leather processing cattle hides from their own packing plants in the USA.
Source: Hidenet.com
