Texas-based poultry producer Pilgrim’s Pride Corp has announced net income of US$1.3m, or US$0.03 per share, for the Q2 ended 30 March 2002, up US$11.1m year on year.
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The dramatic increase was due to the change in tax laws in Mexico, said David Van Hoose, CEO, president and COO, which bought a US$9.7m income tax benefit.
“The outbreak of low-pathogenic avian influenza in Virginia significantly negatively affected our Eastern Turkey Division in the quarter,” he added, as it brought a pre-tax charge of about US$5.5m.
“Additionally,” said Hoose, “The commodity nature of our Eastern Chicken Division business negatively affected this quarter compared to the same period last year.”
The company also announced record net Q2 sales of US$600.8m, a 10.9% increase year on year due to the acquisition of WLR Foods in 27 January 2001.
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By GlobalDataFor the H1, the company reported net income of US$14.2m, or US$0.35 per share, a US$11.3m increase compared to the net income of US$2.9m, or US$0.07 per share, in the previous year. Net sales for the H1 were US$1,256.8m, up 35.5% year on year, an increase again resulting primarily from the acquisition of WLR Foods.
“We have taken significant steps to shift the product mix and improve the profitability outlook for our Eastern Chicken Division, [but] we won’t see measurable effects of these actions until the end of our Q3 and accordingly, the results during this quarter were not significantly different than those in our Q1 of this year,” Hoose added.
