Smithfield reaffirms financial position

SMITHFIELD, Va. – Smithfield Foods Inc. said Friday that its current liquidity and ability to meet expectations is still sound.

The company said that it made the announcement after recent turmoil in the protein industry. On Friday, Pilgrim’s Pride Corp. announced that it was expecting a significant loss for the fourth quarter of fiscal 2008.

Smithfield said that as of Sept. 25, the company had more than $500 million in liquidity from committed lines of capital. The company is currently in compliance with all covenants and expects to be in compliance for all its major facilities through the fiscal year ending April 26, 2009. No significant debt payments are due until late 2009, according a statement from the company.

The company also said that it is very comfortable with its current hedging positions which it expects to be favorable to the company's results in the current quarter.

Source: Smithfield Foods Inc.

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