Falling chicken prices and higher feed costs have pushed US poultry company Pilgrim’s Pride to report a third-quarter loss.
Pilgrim’s Pride today (28 October) posted a net loss of $162.5m for its third quarter ended September 25. In the same period in 2010 the company reported net earnings of $57.9m.
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The US poultry processor also announced net sales of $1.9bn, up from $1.7bn for the same period last year.
Market prices for some key chicken products were down sharply compared to a year ago. Boneless skinless breast meat in the third quarter averaged $1.27 per pound, versus $1.71 a year ago, while the market price for wings was $0.89, compared to $1.19 per pound last year, the company said.
In contrast, the company added that feed-ingredient costs remained high over the quarter. Market prices for corn averaged $6.92 per bushel, up 65% from a year ago, while soybean meal averaged $352 per ton, a 15.4% increase.
Bill Lovette, CEO of Pilgrim’s Pride, highlighted that the results included non-recurring charges of $52.7m.
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By GlobalData“We are making decisions now that will drive profitability going forward”, he added.
For the first three quarters of fiscal 2011, Pilgrim’s reported a net loss of $411.4m or $1.92 per share. This compares to net earnings of $45.3m, or $0.21 per share for the comparable period in 2010. Pilgrim’s net sales were $5.71bn, compared to $5.07bn a year earlier.
