November 14, 2007

Pilgrim's Pride reports increased profit for fourth quarter

Pilgrim's Pride Corporation, the world's largest chicken company, reported a net income of US$33.2 million on record sales of US$2.15 billion for the fourth quarter which ended September 29, 2007.

This is compared to a net loss of US$7.5 million related to the extinguishments of debt incurred by the company for the fourth quarter of fiscal 2006,

The improved profitability has been attributed to strong export demand and low cold-storage inventories which helped sustain positive market pricing trends, according to O.B, Goolsby Jr., Pilgrim's Pride president and CEO.

Increased penetration of supermarket meat and deli cases also help Pilgrim's Pride to grow as a category management partner.

Goolsby however, disclosed that the improved earnings are still lower than their own targets. He stated that operational inefficiencies and higher fuel costs needed to be resolved for higher profit generation. 

Automation, according to Goolsby, will be a major focus in the company's capital investment programme for 2008.