Smithfield Foods Inc. announced on November 20, 3003, its earnings for the second quarter of fiscal 2004, ended October 26, of $36.2 million, or $.33 per diluted share, versus net income of $4.1 million, or $.04 per diluted share, last year. Second quarter sales were $2.1 billion versus $1.8 billion last year.

Net income from continuing operations, excluding Schneider Corporation results, was $31.9 million, or $.29 per diluted share, compared with break even results last year. On September 25, Smithfield announced a definitive agreement to sell Schneider, its wholly-owned Canadian subsidiary, to Maple Leaf Foods Inc. The sale, which is subject to regulatory approval, is expected to close before the end of the company’s fiscal year.

The company attributed the favorable results to sharply-improved hog production results and dramatically higher beef margins that more than offset somewhat lower fresh pork and processed meats margins due to higher raw material prices.

The acquisition of Farmland Foods pork processing and hog production assets was completed on October 28 and will be reflected in Smithfield’s third quarter results. The acquisition of Farmland Foods, net of the disposition of Schneider, is expected to be immediately accretive to earnings.

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