In a filing with the Securities and Exchange Commission, Pilgrim’s Pride revealed that it anticipates a charge for inventory valuation adjustments in the fiscal quarter ended December 31, 2005 that could be as much as US$4m.
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These adjustments are related to the company’s extensive restructuring plans. On 30 December 2005, the company committed to restructuring its turkey operations. As of 3 March 2006, the company intends to cease the production of ground turkey and cooked turkey deli breast meat at its Franconia, Pennsylvania plant.
Additional changes may be recorded during the remainder of the 2006 financial year, as the company may dispose of equipment related to the restructured operations having a net book value of approximately US$620,000.
