Smithfield Romania sees profit go down by 74 percent in fiscal 2011

The local subsidiary of American Smithfield Foods has registered a USD 9.2 million profit in fiscal 2011, 74 percent less against the previous year. The results were mainly generated by the loss of governmental incentives, Smithfield Romania receiving USD 32.2 million less funds from the Romanian state in fiscal 2011.

“The company’s Romanian operations remained profitable; however, results declined versus the prior year due to an adverse fresh pork environment and the expiration of incentive programs,” reads the company’s annual report. According to the same source the American investor is expecting similar results this fiscal year also due to market conditions.

Between May 2010 April 2011 Smithfield saw sales go up by 9 percent in Romania reaching USD 199 million.

Smithfield Foods has been present in Romania since 2004.

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