Brazil JBS sees US$300 million in synergies from Pilgrim's Pride in 2011

Brazil's JBS SA, the world's largest beef producer, anticipates that recently acquired Pilgrim's Pride should see synergies of US$300 million in 2011.

 

JBS last year agreed to pay US$800 million to buy a majority stake in Texas chicken company Pilgrim's Pride Corp.

 

The company in September announced a merger with local rival Bertin.

 

JBS expects to generate synergies at Pilgrim's Pride of at least US$200 million in 2010, Jerry O'Callaghan, JBS director of investors relations told analysts during an earning conference call.

 

"JBS will keep growing in 2010 and will continue to focus on the integration of Pilgrim's Pride and Bertin," he told analysts.

 

JBS has already tapped US$95 million in synergies from Pilgrim's Pride at the corporate level in transport and logistics, and packaging, O'Callaghan said.

 

In Brazil, O'Callaghan said synergies at Bertin should reach BRL145 million (US$81 million) in the first quarter of this year.

 

JBS reported a fourth-quarter net profit of BRL127.9 million (US$72 million), reversing a loss of BRL53.2 million (US$30 million) a year earlier. JBS fourth-quarter net revenue was down at BRL7.4 billion (US$4.2 billion) from BRL9.63 billion (US$5.4 billion).

 

For the full year of 2009, the company reported a net profit of BRL129.4 million (US$73 million), up from BRL25.9 million (US$14.5 million) a year earlier.

 

Brazil is the world's No.1 beef exporter.