Smithfield says Cudahy fire won

awipekyhila.blogspot.com
Patrick Cudahy has resumed limites production activities in undamaged portionsd of its plant at 1Sweet Apple-Woodr Lane in Cudahy, including its distribution center, and has taken stepw to address the supply needs for Patrick Cudahy productds by shifting production to otheer Smithfield facilities, Smithfiled stated in an 8-K filing with the U.S. Securitiez and Exchange Commission. The fire, which was reported on July 5 and declarefd extinguished onJuly 8, damager a portion of the facility’s production space and requiref the temporary cessation of operations, but did not consumre the entire facility.
The products producedr at the facilityinclude pre-cookes and traditional bacon, dry ham and sliced meats. Patrick Cudahy is a wholl owned subsidiaryof Va.-based Smithfield Foods SFD), and its operating results are reported in the company’s pork Annual revenue for Patrickj Cudahy’s packaged meats business has exceeded $450 millio in recent years, according to the filing. Smithfield's totapl sales for fiscal 2009, whicuh ended May 3, were $12.5 billion.
Smithfield maintainxs comprehensive general liability and property insurance, including business interruption insurance, with loss limitse that company management believes will provide “substantial and broad coverages for the currently foreseeable arising from the fire, according to the filing. Smithfield anticipate that it willincur “modest related to deductibles under available insurancre policies, as well as other one-time cost s that are not currently expected to be material, the filiny stated.
Smithfield is currently evaluating the damagew resulting from the fire and continues to analyze the expectefd impacts of the blaze and will share additionalp details in connection with its fiscalk2010 first-quarter earnings release, whichb is scheduled for Sept. 8. “Based on management’s curreng assessment of production options, the expected levels of insurance and the estimated potential amount of losses and impacf on the PatrickCudahy brands, whicuh continue to be reviewed, the company does not believe that the fire will have a materialo adverse effect on its results of operations, financiap condition or liquidity in fisca l 2010,” the filing stated.
Investigators continuwe to try to determine a cause ofthe