May 2, 2007

Pilgrim's Pride widens loss in second quarter

While long-time rival Tyson reports a return to profits, Pittsburg, Texas-based poultry processor Pilgrim's Pride Corp. on Tuesday announced that its fiscal second-quarter loss widened.

Citing the high price of corn and charges related to its acquisition of Atlanta-based Gold Kist Inc. earlier this year, Pilgrim Pride posted a loss of US$40.1 million for the three months ended March 31.

This was in comparison to a loss of US$32 million last year. Pilgrim's Pride acquired Gold Kist earlier this year to become the largest chicken processor in the US, overtaking leader Tyson.

In spite of the disappointing news, sales increased 58 percent to about US$2 billion.

Although the company passed some of the additional feed costs to consumers, it absorbed some of it as well, the company said.

Pilgrim's Pride previously announced 5 percent company-wide production cutback and it is optimistic about the third quarter. 

Lower industry production and higher pricing in the summer months would improve the company's performance over the rest of the year, O.B. Goolsby Jr., Pilgrim's Pride president and CEO, said in a news release.