Pork processor reports high profits, low sales

KANSAS CITY, Mo. -- Pork processor Premium Standard Farms Inc. on Tuesday said second-quarter profits inched upward, but not enough to satisfy investors who caused the company's stock value to, at one point, tumble more than 10 percent.

Shares of Premium Standard closed at $16.05, down $1.54, or 8.8 percent, in trading on the Nasdaq stock exchange. The stock has traded in a 52-week range of $12.50 to $18.54.

For the three months ending Sept. 24, the Kansas City-based company reported earnings of $12.2 million, or 39 cents per share, compared with $11.9 million, or 38 cents per share, during the same quarter a year ago. The company went public earlier this year.

Revenue for the quarter decreased 2.5 percent to $213.2 million, from $218.8 million during the year-ago quarter.

Premium blamed the smaller numbers on lower prices for pork and live hogs brought on by weaker domestic demand.

Analysts surveyed by Thomson Financial had expected earnings of 48 cents per share on revenues of $232 million.