January 30, 2008

Pilgrim's Pride announces loss for its latest quarter
 

Pilgrim's Pride reported a huge loss for its latest quarter while planning to install automatic deboning equipment at their facilities.
 

The company lost US$32.33 million, or 49 cents per share, in its first fiscal quarter. That is a significant difference from the company's loss of US$8.74 million, or 13 cents per share, in 2006.

The results had included a one-time income tax charge of US$13 million, or 20 cents per share. Without the one-time tax charge, the loss would be 29 cents and based on that, Wall Street analysts, on average, expected a profit of 34 cents per share on that basis.

Meanwhile, Chief Operating Officer J. Clinton Rivers told analysts that the company has installed automatic deboning equipment in two plants, and plans to add more at other facilities throughout the year to increase processing capacity and efficiency.

The plans were first announced in November 2007, citing labour shortages.

At one of the locations with new automatic deboning equipment, Rivers said yield has improved relative to previously experienced staffing inefficiencies. He said the other facility is yielding less than with manual deboning, but operating efficiencies have improved.

Rivers said the use of automation would continue while the payback exists.

Headquartered at Pittsburgh, Texas, Pilgrim's Pride is the US' biggest chicken producer.