November 16, 2006

Pilgrim's Pride returns to profitability despite fourth quarter loss

Despite reporting a US$7.5 million loss for the fourth quarter, Texas-based Pilgrim's Pride Corporation has returned to profitability, discounting a one-time US$25.8 million tax expense for the year.

The loss amounted to US$0.11 per share. Total sales for the quarter reached US$1.3 billion.

The company incurred non-recurring tax expenses of US$25.8 million for the year, related to the company's repatriation of US$155 million of foreign earnings.

If this effect has been excluded, net income for the fourth fiscal quarter would have been US$18.3 million, exceeding analyst estimates.

Pilgrim's Pride president and chief executive officer, O.B. Goolsby, Jr., said in a news release that in the fourth quarter, excluding the tax effect associated with the foreign dividend repatriation, the company has made a return to profitability.

The company's financial performance during the quarter reflected an improvement in chicken prices for most of the quarter. The effect was also achieved due to the progress in lowering costs and raising efficiency, he said.