JBS posts 1Q loss due to global recession

JBS SA, the largest beef processor in the world, the third-largest beef and pork processor in the United States, has reported a loss for its first quarter due to global recession spillover from last year and challenges in its Argentine beef and US pork businesses.

JBS president Joesley Mendonca Batista said noted that the company started to consolidate its global operating platform last year to improve its effectiveness and efficiency including shutting down excess harvest capacity.

Batista said JBS was facing and resolving the challenges in its Argentine business and was realising recovery in its US pork business.

He also said the company's results were adversely affected by the global economic situation that has reduced the credit lines of importer-customers, and much of the first-quarter loss was a consequence of BRL446.6 million (US$215.6 million) that were allocated for financial expenses.

He said that the next several years would be marked by expansion and integration of the JBS global platform.

US$1 = BRL2.071 (May 19)