Pilgrim’s Pride expects 802M Q4 loss
Dallas Business Journal
Chicken processor Pilgrim’s Pride Corp. is waiting to hear whether lenders will extend a temporary waiver under its credit facilities after granting the company an initial waiver last week before the Thanksgiving holiday.
Meanwhile, Pittsburg, Texas-based Pilgrim’s Pride (NYSE: PPC) said in a Securities and Exchange Commission filing the company expects an $802 million, or $10.83 per share, loss for the fourth quarter. That compares to the company’s loss of $33.2 million, or 50 cents per share, on sales of $2.15 billion for the fourth quarter of 2007.
Sales are expected to hit $2.17 billion for the fourth fiscal quarter ended Sept. 27. Pilgrim’s Pride says the significant loss will include a $501.4 million charge tied to the impairment of goodwill associated with Pilgrim Pride’s purchase of Gold Kist Inc.
The loss also includes an income tax valuation allowance of $35 million, or 47 cents per share. Pilgrim’s Pride added that without these particular losses, the company’s net loss would have been $265.6 million, or $3.59 per share.
The chicken processing company confirmed that losses on feed ingredient continued to plague financial results, with the company expecting losses associated with feed ingredient derivative contracts to hit $96.9 million, or $1.31 per share.
For the entire fiscal year of 2009, Pilgrim’s Pride’s SEC filing says, “The company anticipates recognizing losses on feed ingredient derivative contracts for the first quarter of fiscal 2009 of $21.8 million, which are anticipated to be $13.4 million, or 18 cents per share, net of tax, with respect to feed ingredient derivative contracts that remained open at Sept. 27, 2008."
For the 2008 fiscal year, Pilgrim’s anticipates a total net loss of $998.6 million, or $14.40 per share, while net sales are expected to be $8.5 billion. For the 2008 fiscal year, Pilgrim’s anticipates a total net loss of $998.6 million, or $14.40 per share. Meanwhile, net sales are $8.5 billion. Last year, the company reported net income of 47 million, or 71 cents per share, for the year on sales of $7.60 billion.
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