Pilgrim's Pride has reported net income of US$33.6 million for the quarter ended December 27, 2009, compared to a net loss of US$228.8 million in the same quarter a year ago.

Net sales for the fourth quarter reached US$1.6 billion, down from nearly US$1.9 billion in the same quarter of 2008.

Market pricing for chicken products during the quarter was mixed. The average market price for breast meat rose 8% and for wings increased by 37% versus the same period a year earlier. The average market price for leg quarters, however, declined 10% and Georgia Dock dropped about 5%.

Pilgrim's Pride said its total US feed-ingredient costs in the quarter declined about US$120 million or 20%, when compared to the same period a year ago.

The company reported an overall operating profit of US$7.6 million for the quarter, an improvement of US$185.8 million from a year earlier. Operating income was driven by higher gross profit and a US$16 million reduction - or nearly 17% drop - in Selling, General and Administrative (SG&A) expenses in the company's US operations as the company continued to benefit from expense reduction efforts during its reorganisation.

Don Jackson, Pilgrim's Pride president and chief executive officer, said the financial results have improved dramatically over the past year, but there is still much more work to be done in positioning the company for sustained profitable growth. He said the company will continue to focus on opportunities for improving its product mix, expanding its customer base and operating more efficiently.

"We are squarely focused on being a market-driven company that produces to the needs of our customers and the market. We have reduced our production of commodity chicken and are targeting higher-margin products. Our core retail and foodservice demand is driving supply. Our supply chain is focused on optimising production, while our operations group is driving performance through safety, quality, productivity and cost efficiency,'' said Jackson.

Pilgrim's Pride Corporation operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The company's primary distribution is through retailers and foodservice distributors.