Jan 29, 2008 10:21 am US/Central
Pilgrim's Pride 1Q Loss Widens On Grain Costs
PITTSBURG, Texas (AP) ―
Chicken producer Pilgrim's Pride Corp. on Tuesday said its first-quarter loss widened, largely due to soaring costs for grain that have hurt profits throughout the industry.
Its shares fell more than 6 percent in morning trading.
The company reported a loss of $32.3 million, or 49 cents per share, for the October-December period versus a loss of $8.7 million, or 13 cents per share, in the prior-year quarter.
Pilgrim's Pride said excluding an income tax charge, it had a loss of 29 cents per share.
Analysts polled by Thomson Financial expected a profit of 33 cents per share.
Pilgrim's Pride said a 24 percent boost in animal feed ingredient prices contributed to the loss. The higher prices are mostly a function of skyrocketing costs for corn, which is used to make the feed as well as the alternative fuel ethanol.
Revenue rose nearly 57 percent to $2.09 billion from $1.34 billion in the first quarter of 2007.
Analysts predicted revenue of $2.08 billion.
Its shares fell $1.70, or 6.6 percent, to $24.02 in morning trading Tuesday.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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