Pilgrim's Pride's net income declines

by Keith Nunes
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GREELEY, COLO. — Earnings for poultry processor Pilgrim’s Pride Corp., which is majority owned by the Brazilian company JBS S.A., declined during the third quarter of fiscal 2010 when compared with the same period during fiscal 2009. Net income was $58,522,000, equal to 27c per share on the common stock, for the quarter ended Sept. 26. During the third quarter of fiscal 2009 net income was $82,300,000, or $1.12 per share on the common stock.

Sales during the quarter were $1,719,850,000, a slight decline compared with fiscal 2009 when sales were $1,736,149,000.

During the third quarter of fiscal 2009 Pilgrim’s Pride had approximately 77.1 million shares outstanding. During the same period of 2010 the company had 214.3 million shares outstanding.

Looking ahead to fiscal 2011, Don Jackson, president and chief executive officer, said he is optimistic about market conditions.

“While all of us are concerned about higher grain prices and the uncertain economy, there are several encouraging signs heading into next year,” he said. “Given the reduction in beef supply and the higher prices that are expected for beef and pork, chicken should be attractively positioned with consumers who are looking for the best value.

“As a result, many of our customers are planning to feature chicken more prominently on their menus or in their stores next year. We are already seeing an increase in food service demand for next year.”

Mr. Jackson also said Pilgrim’s Pride is on schedule to restart deboning operations at its idled processing plant in Douglas, Ga., in mid-November. The company said it is planning future expansion efforts later in 2011 and in 2012.

Pilgrim’s Pride’s net income for the first nine months of fiscal 2010 declined significantly compared with the same period during fiscal 2009. Net income for the first three quarters was $47,746,000, or 21c per share on the common stock. During 2009 net income was $77,130,000, or $1.04 per share.

Sales for the first three quarters were $5,070,336,000, down from $5,211,604,000 during the same period in 2009.

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