US poultry group Pilgrim's Pride said today (30 July) that restructuring costs had hit its second-quarter earnings, which slid by more than a third.
The company, in which Brazilian meat giant JBS owns a 64% stake, posted net earnings of US$32.9m for the three months to 27 June, down 38.2% on the year.
The company ran up administrative restructuring charges of $16.9m during the quarter as part of the relocation of the group's head office.
However, adjusted EBITDA, which excludes the charges, fell 23.1% to $127.6m. Turnover stood at $1.71bn, compared to $1.78bn a year earlier.
Nevertheless, president and chief executive Don Jackson said Pilgrim's Pride, which fell into bankruptcy in late 2008, was making progress.
"Our results for the second quarter reflect significant improvement from the first quarter, a sign that the operational and structural changes we have made over the past 18 months are beginning to pay off," Jackson said.
"We are making progress in a number of areas, including new business, cost control and operating efficiencies. We continue to make gains in live operations and plant costs."
Shares in the company were down 3.5% at $6.72 at 12:54 CEST.
Sectors: Financials, Meat & poultry
Companies: Pilgrim’s Pride, JBS
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