Smithfield Foods loss less than expected

Profits on pork sales were down due to the recession, but the packaged meats segment of that unit had record earnings.

Influenza A H1N1, commonly called swine flu, did not affect the quarter, which ran through May 3, but did hurt business later in May. The flu's impact on domestic sales is lessening, but continues to restrict exports, specifically to China, the company said.

While feed costs should moderate going forward, Smithfield said it would reduce its sow herd an additional 3 percent following a previous 10 percent reduction.

"I am pleased to report that we are continuing discussions regarding refinancing with various lenders, well in advance of current maturities," Chief Executive C. Larry Pope said in a statement.

The company's financials and debt have been a concern of analysts and on Tuesday it reported more than $1.1 billion in liquidity at the end of the fiscal year and had pared debt by more than $890 million.

"Both the hog production and pork processing businesses posted better margins than we anticipated," Ken Goldman, J.P. Morgan analyst, said in a note.

The Smithfield, Virginia-based company reported a loss of $78.8 million, or 55 cents per share, for the fourth quarter that ended May 3, compared with a year-ago profit of $2.4 million, or 2 cents per share

Revenue was $2.85 billion, compared with the year ago's $2.87 billion.

This year's quarterly results include a one-time gain of $13.1 million for foreign tax credits.