May 2, 2012

Brasil Foods reports lower profits than previously estimated, and attributes the loss to declining demand and higher production costs, according to reports.

The poultry producer's sales dropped by 5.4% in the first quarter.

Net income, previously at EUR151 million (US$200 million), had now slumped to EUR81 million (US$107 million).

Brasil Foods' chicken and turkey were in lower demand in the Middle East and Japan, and with an increase in feed prices the company experienced lower profits then estimated. Russia's import ban as well as Argentina's troubled economy also helped to depress profits.