SOURCE: Swift & Company

October 10, 2006 16:30 ET

Swift & Company Announces Production Cutbacks at U.S. Beef Facilities

GREELEY, CO -- (MARKET WIRE) -- October 10, 2006 -- Swift & Company, the third-largest processor of fresh beef products in the U.S., today announced its intent to continue to limit production at three of four domestic beef processing facilities to 32 to 37 hours per week. The Company cited unsustainable gross margins due to high cattle prices, seasonally weak domestic boxed beef demand and limited access to key international export markets as the key reason for the production cutback.

Swift intends to limit production at these three facilities to 32 to 37 hours per week until beef processing gross margins materially improve. The Company has been operating at this level for the past several weeks.

Production cutbacks are planned for the following Swift & Company beef facilities: Cactus, Texas; Grand Island, Nebraska; and Greeley, Colorado.

About Swift & Company

With more than $9 billion in annual sales, Swift & Company is the world's second-largest processor of fresh beef and pork. Founded in 1855 and headquartered in Greeley, Colorado, Swift processes, prepares, packages, markets and delivers fresh, further-processed and value-added beef and pork products to customers in the United States and international markets. For more information, please visit www.swiftbrands.com.

Information Concerning Forward-Looking Statements

This press release contains certain statements, projections and forecasts regarding Swift & Company's future business plans, financial results, products and performance that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of such words as "may," "will," "should," "expects," "plans," "anticipates" and "believes." There are a number of risks and uncertainties that could cause the actual results to differ materially. Some of these risks and uncertainties include product liability claims and recalls, livestock disease, fluctuating raw material costs and selling prices, changes in consumer preferences, compliance with environmental regulations and labor relations, operating in a competitive environment, and other general economic conditions and other risks described in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission and available on the SEC's website. Statements in this press release are based on the information available to the Company as of the date of the release. The Company undertakes no obligation to update the information contained in the press release.

Swift & Company's most recent Form 10-Q, filed with the Securities and Exchange Commission on October 2, 2006, is filed under the parent's name of S&C Holdco 3, Inc., and may be seen at: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001199114&owner=include

Contact Information

  • Contact:
    Sean McHugh
    Vice President
    Investor Relations and Communications
    (970) 506-7490