MEATINGPLACE.COM: "National Beef profits drop by half"
- Notice Miller doesn't even hint at one of the reasons for this drop could possibly have anything to do with the fact that beef is definitely in a downturn in popularity, due to health, environmental and cruelty awarenes being campaigned all over the globe!!! Are we making progress? I think so. ~Paris
National Beef profits drop by half by Pete Hisey on 12/2/2005 for Meatingplace.com Kansas City, Mo.-based National Beef Packing Co. said its profits dropped 53 percent this year, mostly because of ongoing business conditions resulting from the discovery of bovine spongiform encephalopathy in the United States two years ago.
For its fiscal year ended Aug. 27, net profits were $20.8 million, compared to $44 million a year ago. Sales increased 5 percent to $4.3 billion, but gross margins declined to 1.2 percent from 1.7 percent a year ago.
John Miller, chief executive, said that the combination of higher cattle prices brought on by the U.S. ban on Canadian cattle, combined with the closure of the Japanese market to American processed beef, raised National Beef's costs and kept prices for finished products low.
"It was a tough summer, and we were fortunate to get out of it with a reasonable margin structure and profit," Miller said.
However, Miller warned that 2006 will be challenging, and that National Beef is likely to see a larger loss in its first quarter than it did a year ago, when it lost $4.4 million. "It's going to be pretty tough sledding here for another six months, maybe longer," he said, adding that it will take time to reestablish market share in Japan, even if it reopens its market quickly.
Ms. Paris Harvey firstname.lastname@example.org 925 788 8296 (PST)
http://www.peta.org/AnimalLiberation/display.asp ...Spend a few minutes here.
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