Pilgrim's Pride reports wider Q1 loss

Pilgrim's Pride Corp., which filed for bankruptcy protection in December, reported a wider first-quarter loss.

Pilgrim's Pride, which filed for bankruptcy protection after facing soaring feed costs, falling chicken prices and a big debt load, said it lost US$228.8 million, or US$3.09 a share, in the first quarter ended Dec. 27, compared with a loss of US$32.33 million, or US$0.49 a share, a year ago.

First-quarter sales fell to US$1.88 billion from US$2.05 billion.

The company, based in Pittsburg, Texas, said market prices for chicken have stabilised since the end of 2008 but have not yet improved enough to offset the high cost of feed ingredients.

Prices improved after many producers cut production last year in an effort to correct the oversupply of chicken.

It said it was considering further ways to reduce costs that could include eliminating more jobs, selling assets, idling facilities, consolidating operations, and relocating or reducing production.

Pilgrim's Pride spokesman, Ray Atkinson said the nation's largest poultry producer will reduce capacity at its Live Oak, Florida, chicken processing plant, which employs 1,400 workers, by eliminating the second shift.