SMITHFIELD, Va., Aug. 8 /PRNewswire-FirstCall/ -- Smithfield Foods, Inc. today confirmed outbreaks of classical swine fever (CSF) at two of its hog farms in Romania. Quarantine measures have been imposed on these farms. The results of CSF tests on animals at the company's other farms in Romania have thus far been negative.
The company is working closely with national and local governmental authorities in Romania to contain the outbreaks. Approximately 39,000 animals at the two farms will be destroyed and disposed of under the direction of Romanian governmental authorities. The company estimates that inventory write down and disposal costs associated with the outbreaks will negatively impact fiscal second quarter operating results by $4-5 million.
CSF is a highly contagious viral disease affecting pigs which is endemic to Romania and the company has been working with the government to eradicate it. The company emphasized that CSF does not affect humans and therefore poses no threat to human health or food safety.
With sales of $12 billion, Smithfield is the leading processor and marketer of fresh pork and processed meats in the United States, as well as the largest producer of hogs. For more information, visit http://www.smithfieldfoods.com/.
This news release contains "forward-looking" statements within the meaning of the federal securities laws. The forward-looking statements includes statements concerning the Company's outlook for the future, as well as other statements of beliefs, future plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. The Company's forward-looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. These risks and uncertainties include the availability and prices of live hogs and cattle, raw materials, fuel and supplies, food safety, livestock disease, live hog production costs, product pricing, the competitive environment and related market conditions, the timing and extent to which beef export markets are reopened, hedging risk, operating efficiencies, changes in interest rate and foreign currency exchange rates, access to capital, the investment performance of the Company's pension plan assets and the availability of legislative funding relief, the cost of compliance with environmental and health standards, adverse results from on- going litigation, actions of domestic and foreign governments, labor relations issues, credit exposure to large customers, the ability to make effective acquisitions and successfully integrate newly acquired businesses into existing operations and other risks and uncertainties described in the Company's Annual Report on Form 10-K for fiscal 2007 and in its subsequent Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements because actual results may differ materially from those expressed in, or implied by, the statements. Any forward-looking statement that the Company makes speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
