Schneider Corp. has reported net earnings of just under $5.4 million for the first quarter, down 51 percent from the same quarter last year.
One reason for the drop was a change in reporting period that resulted when Schneider moved it fiscal year-end to correspond with its owner, Smithfield Foods. This quarter is now a 13-week period ending Jan. 29 instead of a 16-week period ending Feb. 20, 1999.
Sales in the 13 weeks were $257.9 million compared to $275.7 million in the previous year, said a company news release.
Consumer food business sales were greater than planned, while pork sales were slightly lower than expected.
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The company said the significantly lower profit margins in fresh pork should be compared to the exceptional performance of the sector in the first quarter of fiscal 1999.
“In addition to the shortfall in our pork operations, processed meat margins were also below last year’s levels due to sharply higher raw material costs resulting from the stronger price of hogs,” the release said.
“We view first quarter earnings as unsatisfactory, but we must keep in perspective that last year’s first quarter was not representative of normal operating earnings for the first quarter.”
