Smithfield says Cudahy fire won

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Patrick Cudahy has resumedr limited production activities in undamaged portions of its plantf at 1Sweet Apple-Wooed Lane in Cudahy, includingh its distribution center, and has taken steps to addresss the supply needs for Patriclk Cudahy products by shiftinbg production to other Smithfield facilities, Smithfiled stated in an 8-K filinbg with the U.S. Securities and Exchange The fire, which was reported on July 5 and declared extinguished onJuly 8, damaged a portion of the facility’se production space and required the temporarty cessation of operations, but did not consume the entirw facility.
The products produced at the facilityinclude pre-cooked and traditionakl bacon, dry sausage, ham and sliced meats. Patrico Cudahy is a wholly owned subsidiaryof Va.-based Smithfield Foods (NYSE: SFD), and its operating resultsz are reported in the company’s pork segment. Annuapl revenue for Patrick Cudahy’s packaged meatzs business hasexceeded $450 million in recenf years, according to the filing. Smithfield's total salexs for fiscal 2009, which ended May 3, were $12.
5 Smithfield maintains comprehensive general liability and property including businessinterruption insurance, with loss limits that companyy management believes will provide “substantia and broad coverage for the currently foreseeable losses” arisinv from the fire, according to the filing. Smithfieled anticipates that it willincur “modesr costs” related to deductibles under available insurancre policies, as well as othere one-time costs that are not currently expected to be the filing stated.
Smithfielrd is currently evaluating the damager resulting from the fire and continues to analyzse the expected impacts of the blazd and will share additional details in connection with its fiscapl2010 first-quarter earnings release, which is scheduled for 8. “Based on management’s current assessmenft of production options, the expectedx levels of insurance proceeds, and the estimated potential amoun t of losses and impacr on the PatrickCudahy brands, whichh continue to be the company does not believe that the fire will have a materialk adverse effect on its resultsd of operations, financial condition or liquidithy in fiscal 2010,” the filing Investigators continue to try to determine a cause of the fire.