DOW JONES NEWSWIRES Smithfield Foods Inc.'s (SFD) fiscal third-quarter profit soared as sales climbed and a $120.6 million gain on a fire insurance recovery boosted the bottom line. The seller of John Morrell and Farmland brand sausage, cold cuts and bacon has benefited from tight global pork supplies. Its hog business has also benefited from brisk demand and the company's well-timed locking in of feed contracts, which should shield it from surging corn prices. Moody's Investors Service and Fitch Ratings both upgraded the company in recent months, citing its improved performance and debt-reduction efforts, while Standard & Poor's Ratings Services put it on watch for upgrade in January. For the quarter ended Jan. 30, the company reported a profit of $202.6 million, or $1.21 a share, up from $37.3 million, or 22 cents a share, a year earlier. Excluding items such as the insurance gain and a debt-extinguishment charge, the latest quarter's earnings were 84 cents, a record for the fiscal third quarter. Sales jumped 10% to $3.19 billion on higher average unit selling prices in the pork segment and higher live hog market prices. Analysts polled by Thomson Reuters most recently forecast a profit of 66 cents on $3.16 billion in revenue. Smithfield's packaged meats business, its largest top-line contributor, saw earnings drop 12% as sales climbed 17%. The fresh pork business' sales climbed 5.2%. Shares closed Wednesday at $22.75 and were inactive in recent premarket trading. -By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com
