Pilgrim's Pride reports 2Q profit
The chicken processor's profitable second quarter led to an increase of 27 cents per share vs. a loss of 57 cents the previous second quarter, according to an earnings report released Friday by the company.
Pilgrim's sales rose 2.7 percent to $1.97 billion. The company also cut its net debt to $1.18 billion, reflecting a year-to-date reduction of $248 million.
"While we gained ground versus the competition, we are not at the level we believe we can achieve despite being on target to reach our goal of $200 million in improvements this year," Pilgrim's CEO Bill Lovette said in the statement.
The company also acknowledged that it faces challenges due to high-priced grains that it uses in chicken feed.
"There will be challenges for the industry in the second half of 2012, primarily driven by volatility within the feed-ingredient markets and tepid consumer spending," Lovette said.
Chief Financial Officer Fabio Sandri told investors that Pilgrim's was close to reaching a deal to import corn from Brazil as soon as next month, the Wall Street Journal reported. The move could offset rising feed prices as farmers reduce crop yields due to drought.
The company also announced Friday the appointment of David Bell, the George M. Moffett Professor of Agriculture at Harvard Business School, to its board of directors.
Pilgrim's shares fell 2.5 percent to $4.59 on the New York Stock Exchange.
Based in Greeley, Pilgrim's employs about 38,000 people and runs chicken-processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico.
More breaking news...
Hickenlooper OKs graywater bill
The number of deals sank to
Avago wins approval from city for $22M expansion
Rep. Randy Fischer, D-Fort Collins, and Sen. Gail Schwartz, D-Snowmass Village,