Cranswick dips sharply as pig price hits profit

Cranswick, the grain, pig feed and pig rearing group, warned yesterday that its half-year results, expected early next month, would be hit by 'a substantial and unforeseen' fall in pig prices, writes Terence Wilkinson.

Shares in the company fell by 32p to 159p after it said that interim pre-tax profits would be likely to emerge at around pounds 700,000 compared with pounds 968,000 for the same period in 1992.

The interim dividend will be held at 2.4p.

Cranswick's problems have been concentrated in its pig- rearing side.

The results there have been 'extremely disappointing' because of a substantial fall in pig prices in August and September.

The effect on profitability of this fall in prices was made worse by higher feed costs from flooding in the US and a late harvest in the UK.

Pig prices continued to fall last month and Cranswick said it was too early to give a firm indication of the outcome for the full year to 31 March.

Cranswick said that if, as expected, pig prices now stabilised and fell no further it expected a more satisfactory result in the second half of the year.