Pilgrim's Pride booked a net loss of $128.1 million, or 60 cents a share, compared with a year-earlier profit of $32.9 million, or 15 cents a share. Analysts had expected the company to lose $48.8 million, or 23 cents a share. Revenue rose 12.3% to a better-than-expected $1.92 billion from $1.71 billion.
"Our second-quarter financial results reflect the significant challenges facing our industry this year from the combination of record-high feed costs, weaker-than-expected consumer demand and an oversupply of chicken," said CEO Bill Lovette. "At this time of year we are usually benefiting from stronger market pricing and increased demand from both foodservice and retail, but to date neither that demand nor pricing has materialized." Pilgrim's Pride also announced early Friday it would close its Dallas processing facility by late September as part of its continuing effort to reduce costs and operate more efficiently. Shares of Pilgrim's Pride were unchanged in premarket trading Friday after the stock closed lower at $4.96 in Thursday's session.
-- Written by Miriam Marcus Reimer in New York. >To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to http://twitter.com/miriamsmarket. >To submit a news tip, send an email to: firstname.lastname@example.org.
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