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COPYRIGHT 2007 PR Newswire Association LLC
Company Returns to Profitability on Strength of Improved Pricing and Product Demand
PITTSBURG, Texas, July 31 /PRNewswire-FirstCall/ -- Pilgrim's Pride Corporation , the world's largest chicken company, today reported net income of $62.6 million, or $0.94 per share, on record sales of $2.12 billion for the third fiscal quarter ended June 30, 2007. For the third quarter of fiscal 2006, the Company reported a net loss of $20.5 million, or $0.31 per share, on total sales of $1.29 billion.
"We are pleased with our improved financial performance in the third quarter, particularly in light of continued high costs for feed ingredients," said O.B. Goolsby Jr., Pilgrim's Pride president and chief executive officer. "Our return to profitability is a direct result of improved pricing driven by industry-wide production cuts implemented earlier this year, coupled with strong demand for our products, particularly in the consumer retail segment. As a result of these higher selling prices for our products, we were able to offset the impact of higher corn and soybean meal costs."
Mr. Goolsby also said the Company's Mexico operations returned to profitability in the third quarter.
He also said the Company continues to make good progress with the Gold Kist integration. Through the end of the third fiscal quarter, the Company had realized approximately $48 million in annualized cost savings -- well ahead of its previously forecasted schedule of $25 million by the end of September.
"Our employees are making good progress in identifying opportunities to improve our combined businesses. Together they are working on a wide variety of projects that will help us operate more efficiently and deliver improved service to our customers. In some cases, we've been able to capture synergy savings ahead of schedule, while in other cases the project timelines have been adjusted to meet the demands of our business. In total, however, I'm now confident that...
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