Pilgrim's Pride sustains sharp fiscal losses
May 2, 2006 9:58 AM, from staff and wire reports
Pilgrimís Pride Corp reported a net loss of $32.0 million on total sales of $1.27 billion for its second quarter ended April 1, 2006. For the second quarter of fiscal 2005, the Pittsburg TX-based poultry producer had net earnings of $56.4 million on total sales of $1.38 billion.
For the six months ended April 1, 2006, Pilgrim's Pride reported a net loss of $6.3 million on total sales of $2.61 billion. For the first six months of fiscal 2005, the firm had net earnings of $104.9 million on sales of $2.74 billion.
The company has initiated a multi-point plan designed to improve its competitive position. The plan includes:
ēA reduction of about 3% in the weekly slaughter rate, equivalent to about 830,000 head per week.
ēA $25 million to $40 million reduction in capital investment for fiscal 2006. The revised estimate for capital investment this year is $140 million to $175 million.
ēA sharpened focus on cost reductions and improved efficiencies.
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