Pilgrim’s Pride Corporation (NYSE: CHX, CHX.A) yesterday announced that it expects to report a loss of $0.25 – $0.28 cents per share for its second fiscal quarter ending March 31, 2001 compared to a profit of $0.22 cents per share for the same period last year. The primary factor affecting this year’s second quarter when compared to the prior year is the expected $0.32 – $0.35 cents per share reduction in the profitability of the Company’s Mexico operations resulting primarily from lower selling prices caused by industry-wide increases of chicken production in Mexico. In addition, domestic results are expected to be negatively impacted by January ice storms in Arkansas, higher energy and feed ingredient costs and losses realized in the former WLR Foods, Inc. operations acquired by the Company on January 27, 2001.
“Despite the poor results realized in the current quarter, we remain confident that overall our long-term business strategy will enable our Company to continue to be one of the industry’s best performers,” stated David Van Hoose, Chief Executive Officer, President and Chief Operating Officer of the Company. Mr. Van Hoose stated further “that while our Mexican operations are reporting their worst quarter in over four years, we currently anticipate that these operations will be profitable for the reminder of fiscal year 2001. While the acquisition of WLR Foods, Inc. has negatively impacted the current quarter, we are encouraged by the progress being made in integrating these operations into our existing business and believe that the integration will be completed by the end of the fiscal year. Our current estimates for the second half of fiscal year 2001 are in line with our prior year’s results for such period, while the composition between quarterly periods may vary.”
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Pilgrim’s Pride Corporation is currently the third largest chicken and fourth largest turkey company in the United States and second largest chicken company in Mexico. Pilgrim’s Pride employs more than 22,500 persons and operates processing plants, distribution centers, hatcheries and feed mills in Texas, Arkansas, Arizona, North Carolina, Pennsylvania, Oklahoma, Virginia and West Virginia and Mexico.
Products are sold under the “Pilgrim’s Pride®” and “Wampler Foods®” labels to foodservice, retail and frozen entree customers. The Company’s primary distribution is through retailers and restaurants in Central, Mid-Atlantic, Southwestern and Western Regions of the United States and the Northern and Central regions of Mexico and to the foodservice industry nation-wide in both countries.
Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. For example, factors that could cause actual results to differ materially from those projected in such forward-looking statements include: changes in the commodity prices of feed ingredients, chicken and turkey; the Company’s indebtedness; risks associated with the Company’s foreign operations, including currency exchange rate fluctuations, trade barriers, exchange controls and expropriation; the impact of current and future laws and regulations; risks associated with the Company’s integration of WLR Foods, Inc. into the Company; and the other risks described in the Company’s SEC filings.
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