By Mumbi Gitau

Smithfield Foods Lifts Profit Outlook After Strong Sales. Bloomberg news

(Bloomberg) -- Smithfield Foods Inc., the largest pork producer in the US, raised its profit expectations following strong second-quarter results, despite challenges stemming from tariffs imposed by President Donald Trump on some of the biggest importers of the meat.

The company — maker of Farmland bacon and Farmer John sausages — reported a 10% increase in net sales in the first half of the year, buoyed by its packaged meat segment, the company said in a statement.

Most Read from Bloomberg

• Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion

• New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis

This growth, combined with an improved outlook for its hog production segment, prompted Smithfield to lift its profit outlook to between $1.15 billion to $1.35 billion. The hog production segment has returned to profitability after posting a $176 million loss in the first six months of 2024.

The company’s pork segment “is adeptly navigating a dynamic tariff environment,” said Smithfield President and CEO Shane Smith. “With a solid first half company performance and improved outlook for the Hog Production segment, we have raised our full-year adjusted operating profit outlook.”

Most Read from Bloomberg Businessweek

• Why It’s Actually a Good Time to Buy a House, According to a Zillow Economist

• Bessent on Tariffs, Deficits and Embracing Trump’s Economic Plan

• The Social Media Trend Machine Is Spitting Out Weirder and Weirder Results

• Klarna Cashed In on ‘Buy Now, Pay Later.’ Now It Wants to Be a Bank