First Quarter in Review - Audio Presentation

Greetings fellow employees,
I am pleased to present the first quarter review in audio format.
Please find the recording by clicking here and pressing the play button once you have arrived at the URL.
Thanks again  for your continued dedication!

First Quarter in Review

Today I’ll be reviewing FY’12 Q1 results as well as some key objectives and projects for Q2.  First I’ll open by recapping the markets that impact our input material costs and the forecast for the near future.  Key commodities markets as you know are corn, pork bellies, 20/23 hams, as well as pork and beef trimmings.

                Corn ->                       Up 25% from LY, record high $7.35. No relief in sight

                20/23 Hams ->            Exports up 20% over LY, 10% over forecast.

                Pork Trimmings ->  Over $100/cwt record highs with no immediate relief

                Beef Trimmings ->    Steadily rising as buyers seek alternatives to pork.

The good news is that we have over delivered our gross margin plan for the quarter while missing slightly on volume. Management PBT to plan is roughly 102% of plan. The exciting news is that our core customers that make up the top 10 in volume are growing year after year.

With the difficult economic forecast along with increased export demand as a result of the earthquake in Japan we will need to remain vigilant and execute pricing when needed and strategically execute our promotional strategies. I look forward to reviewing a successful Q2 and thank you all.

The Choice

It was the best solution to the problem at hand. We would no longer be in financial turmoil. It would promote bi-partisanship and help solve the debt crisis. Let’s approve the bill and things will certainly turn around. What happens next? Downgrade credit rating and a forecast of longer recession.

State of the Business Address

Let’s face it 2010 was a bleak year; the housing bubble burst, the economy was declining, new jobs were at an all time low and analysts predicted an even bleaker future for 2011. All of these conditions pointed to putrid results and guess what? That’s NOT what happened. We reported very strong earnings and surpassed analyst forecasts.

Thanks to you and your dedication, our team was able to overcome the adverse conditions that are out of our control and perform to levels that will keep our premium brand status while maintaining low cost producer structure. As a follow up to the strong year we are ecstatic to be introducing a revolutionary line of food products that meet the demands of our consumers and provide healthy and nutritional options for their meal preparations. Please stay tuned for our monthly bulletin which will have new and updates regarding the products and their formal launch campaigns.

As we roll into the next period and embark on yet another difficult year with adverse conditions I would like to thank you in advance for your dedication and perseverance. Danny, Bob, and Kate will be holding a contest in which we will be going to our workforce and seeking new ideas for product development and improvements. Nobody knows our products better than we do which is why we are reaching out to you. Let your imaginations fly and we will review the top 5 ideas during the next meeting.

You are our future and thank you!

Smithfield Foods and Social Media - A Perspective from our Organization

As an organization we believe that staying in tune with new and evolving communication channels is a key component in the success of the company. Attached you will find a company issued white paper that reflects our stance and views regarding social media platforms, It addresses some benefits as well as the inherent risks involved.

Please find the link here : Our White Paper

Tip Aggregator - Info Feed

There are many ways in which I receive information in my daily work routine. One of the more popular ones is a feed from a website called “Meatingplace.com”. The ironic play on words is that it is not a meeting place as in a place to meet others of similar interests but rather a place for all new links and announcements related to meat; the industry in which my organization competes in.

"Meatingplace" is a well known resource for industry professionals looking for any tidbit related to the industry. Everything from market news, employment opportunities, quarterly earnings reports, equipment development, and new product launches, to environmental achievement and OSHA awards. Members can choose from a variety of menu options from the dashboard on the lefthand side of the website. The site sends out a daily news brief as well as a monthly publication which is available in print or electronically. Membership is free with a valid email address and you can visit the site by clicking the link below.

http://www.meatingplace.com/

State of the Business - Town Hall Briefing

Dear Colleagues,

As you may know the costs of business are increasing due to many outside factors. During these unprecedented times we are reaching out to all members of our team to learn new ways to become more competitive and remain ahead of the curve. As we strive to maintain our premium brand status, we continue seeking ideas and thoughts to keep our costs and pricing strategies competitive.  As an organization we encourage you to take a step back and look at our business and processes and share any insight that can make our process more competitive. AS members of our team we feel that you are our most valuable asset and often times remain untapped.

In efforts to foster our new mindset and promote open communication, we would like to start by holding monthly town hall meetings as well as weekly departmental toolbox meetings. We are committed to increasing the communication flow and collaborating to maintain our premium brand perception in the market place as well as reducing our input costs. As our input costs remain volatile it is critical for the immediate and future success to remain vigilant in cost reduction and process improvements.