IBP Has "Exceptional"
Earnings For Quarter

OMAHA, Neb. —(AP)— Strong performance in fresh meat operations and forays into the food service market produced ``exceptional'' first quarter earnings for meatpacking giant IBP, the company reported.

First quarter earnings for 1999 more than quadrupled last year's first quarter results, IBP said Monday.

Net earnings for the first three months of this year totaled $57 million, or 61 cents per diluted share, compared to $14 million or 15 cents per share during the same period in 1998.

Last year's numbers were lower because the company spent so much to reduce its debt, the company said.

Revenues for the first quarter of 1999 were slightly down — to $3.1 billion compared to $3.2 billion last year.

Some of IBP's biggest growths came from the division involved in value-added food production, IBP Enterprises. The division includes subsidiaries Foodbrands America, and The Bruss Company, which are primarily involved in supplying the food service industry.

Robert Peterson, IBP chairman and chief executive officer, said the recent purchase of two new companies will help further the success of IBP Enterprises. IBP in April completed the purchase of H&M Foods and Russer Foods, which produce pre-cooked meats and prepared foods.

Overall improvements in fresh meat margins and the growth of retail-ready products contributed to the success of IBP's beef and pork operations, the company said.

Fresh meat earnings during the first quarter far outpaced last year's total, Peterson said.

Export volumes were up compared to the first quarter of 1998, but total export sales revenues declined by about four percent, IBP said. Lower wholesale prices, caused by reduced livestock prices, have made many beef and pork products more affordable in the world market.

IBP said it will close a packing plant in Palestine, Texas, this spring, citing ``continued challenges in the cow processing business.''

IBP, based in Dakota City, is the world's leading producer of fresh beef and pork. It employs more than 42,000 people.