Pilgrim's Pride posts income of $63 million in quarter

by FoodBusinessNews.net Staff
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PITTSBURG, TEXAS — Strong demand along with improved pricing driven by production cuts helped Pilgrim’s Pride Corp. post a profit for the third quarter ended June 30.

Net income fore the quarter was $62,641,000, equal to 94c per share on the common stock, compared with a loss of $20,473,000 during the same quarter of the previous year.

Sales for the quarter were $2,118,386,000, up 65% compared with sales of $1,287,646,000 during the same quarter of the previous year.

"We are pleased with our improved financial performance in the third quarter, particularly in light of continued high costs for feed ingredients," said O.B. Goolsby, Jr., president and chief executive officer. "Our return to profitability is a direct result of improved pricing driven by industry-wide production cuts implemented earlier this year, coupled with strong demand for our products, particularly in the consumer retail segment. As a result of these higher selling prices for our products, we were able to offset the impact of higher corn and soybean meal costs."

Mr. Goolsby said the company’s Mexico operations also returned to profitability during the third quarter. He said feed-ingredient costs will continue to be one of the biggest operating challenges in the U.S. chicken industry in the future.

For the nine months ended June 30, Pilgrim’s Pride posted net income of $13,829,000, or 21c per share, which compared with a loss of $26,749,000 during the same period of 2006.

Sales for the nine months were $5,449,483,000, up 40% compared with sales of $3,897,167,000 during the same period of the previous year.

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