PITTSBURG, Texas -- Pilgrim's Pride Corp. has reported net income of $33.6 million, or 44 cents per diluted share, on net sales of $1.6 billion for the quarter ended Dec. 27, 2009. These results include an income tax benefit of $102.4 million, or $1.33 per diluted share, related to a net operating loss carryforward, and a net charge of $32.7 million, or 42 cents per diluted share, related to the company's reorganization, officials said.
For the comparable quarter a year earlier, the company reported a net loss of $228.8 million, or $3.09 per diluted share, on total sales of nearly $1.9 billion.
"Our financial results have improved dramatically over the past year as we work to create a market-driven company clearly focused on delivering the highest levels of service, selection and value to our customers as efficiently as possible," said Don Jackson, Pilgrim's Pride president and CEO. "While we are pleased with the progress we have made, we recognize that there is much more work to be done in positioning Pilgrim's Pride for sustained, profitable growth. We will continue to focus on opportunities for improving our product mix, expanding our customer base and operating more efficiently."
Market pricing for chicken products during the quarter was mixed, the company noted. The average market price for breast meat rose 8 percent and for wings increased by 37 percent versus the same period a year earlier. The average market price for leg quarters, however, declined 10 percent and Georgia Dock dropped about 5 percent.
Pilgrim's Pride said its total U.S. feed-ingredient costs in the quarter declined approximately $120 million, or 20 percent, when compared to the same period a year ago.
The company reported an overall operating profit of $7.6 million for the quarter, an improvement of $185.8 million from a year earlier. Operating income was driven by higher gross profit and a $16 million reduction -- or nearly 17 percent drop -- in Selling, General and Administrative (SG&A) expenses in the company's U.S. operations as the company continued to benefit from expense reduction efforts during its reorganization.
"Today our business strategy is clear," Jackson said. "We are squarely focused on being a market-driven company that produces to the needs of our customers and the market. We have reduced our production of commodity chicken and are targeting higher-margin products. Our core retail and foodservice demand is driving supply. Our supply chain is focused on optimizing production, while our operations group is driving performance through safety, quality, productivity and cost efficiency."
On Dec. 28, 2009, Pilgrim's Pride amended and restated its bylaws, which, among other things, changed the company's fiscal year end from the Saturday nearest Sept. 30 of each year to the last Sunday in December of each year. This change aligns the company's reporting cycle with the fiscal calendar of JBS USA, the majority stockholder of Pilgrim's Pride. The change resulted in an approximate three-month transition period which began Sept. 27, 2009, and ended Dec. 27, 2009.
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