Pilgrim's Pride reports profits down 38%
Shares down 2%; Q2 profits at 15 cents per share
The company was hurt by production cuts made last year, lower prices for some export items and restructuring costs, ending with $1.71 billion in revenue in contrast to last year's $1.78 billion. In spite of the drop, the company remains optimistic. "Our results for the second quarter reflect significant improvement from the first quarter," said Pilgrim's Price President and Chief Executive Don Jackson, "a sign that the operational and structural changes we have made over the past 18 months are beginning to pay off." He said both retail and foodservice sales and volume improved from the first quarter, increasing by 2.7% and 3.1%, respectively.
The company was in bankruptcy last year but has since recovered much of the business lost during its resulting reorganization. Plans are in place to reopen three plants in the next two years, which will increase production by roughly 10%. "Looking ahead, we are focused on upgrading the value of our product mix, operating our plants more efficiently and taking full advantage of our stronger financial and competitive position in the marketplace," said Jackson.