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I think we have found the bottom. I can confirm that the TRIX 3,3 and Full STO have crossed and upticking, also MACD is ready to cross as well. Looks like we are well into oversold territory, this is is ready for a major price correction IMO.
The only thing remaing for final confirmation would be the +DI to start upticking for our pincher and the PPO and Full STO (thick blue lines) to begin to separate. When those lines merge like you see below, this is known as a 'pinch'.
If you want some more info on the pincher there is some good information here on ihub.
http://investorshub.advfn.com/boards/board.aspx?board_id=10585
GLTU.
Hi everyone! I am in today @ 4.09, chart looks fantastic, awesome pincher play forming, could see a nice run back to the 6.50 range to fill the previous gap down.
GLTA!
Pilgrim's Pride Appoints Fabio Sandri as Chief Financial Officer
Pilgrim's Pride Corporation (NYSE: PPC) today announced that it has appointed Fabio Sandri as chief financial officer of the company, effective immediately. Mr. Sandri succeeds Gary D. Tucker, 62, who has announced his retirement after eight years with the company, most recently as principal financial officer and chief accounting officer.
Mr. Sandri, 39, previously served as chief financial officer of Estacio Participacoes, the largest private post-secondary educational institution in Brazil, a post he had held since April 2010. Prior to that, he spent nearly two years as the chief financial officer of Imbra SA, a provider of dental services based in Sao Paolo, Brazil. From 2005 to 2008, Mr. Sandri served as strategy director and corporate controller for Braskem S.A., a New York Stock Exchange-listed petrochemical company headquartered in Camacari, Brazil. He earned a Master's in Business Administration from the Wharton School at the University of Pennsylvania and a degree in electrical engineering from Escola Politecnica da Universidade de Sao Paulo.
"Gary Tucker has played an important role in Pilgrim's successful financial restructuring and subsequent integration with JBS USA. With that integration now largely complete, we both agreed that this is the right time for a transition. We deeply appreciate his many contributions to our company over the past eight years. His leadership and guidance will be missed by all who have worked with him," said Bill Lovette, president and chief executive officer. "At the same time, we are fortunate to welcome Fabio to the Pilgrim's management team. We believe his significant experience in strategic planning and financial management will serve our company and our shareholders well."
Mr. Sandri will begin work on Monday, June 6, and will be relocating to northern Colorado from Brazil later this year.
About Pilgrim's Pride
Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Contact: Gary Rhodes Vice President, Corporate Communications & Investor Relations (903) 434-1495
SOURCE Pilgrim's Pride Corporation
http://ih.advfn.com/p.php?pid=nmona&article=47944262&symbol=PPC
PPC BUY CONFIRMED
_________________________________________________________________
PILGRIM S PRIDE CP
Daily Commentary
Our system posted a BUY CONFIRMED today. The previous SELL recommendation was issued on 05.10.2011 (2) days ago, when the stock price was 5.3800. Since then PPC has gained 3.35% .
BUY-IF is confirmed by a white candlestick with a lower open and a higher close. The buying price is the previous close ( 5.4000 ) according to the Rules of Confirmation.
The recent bullish formation leading to the BUY-IF signal is confirmed today. The market seems ready for a new bullish move. Though the market opened lower today, the day’s activity created a white candlestick that closed above the previous close. This is a valid confirmation criterion.
The slight failure of the previous SELL signal is currently confirmed, too. We closely monitor the performance of the signals, but a few shots missing the target slightly are inevitable when you deal with the stock market. However, such signal failures are more unlikely for higher rated stocks.
We hope that you acted quickly and already bought this stock . Today your important benchmark was the previous close. You were supposed to watch the session carefully, feel its bullish tendency despite the lower opening, and go long after making sure that the prices stay over the previous close.
If you bought, continue to hold this stock until the confirmation of the next SELL-IF signal. You are on relatively safe grounds as long as the future prices continue to trade above the benchmark price and if an emergency warning is not issued. What to do if you did not buy? Maybe, you did not have time to follow the session or you simply delegated the delicate job of confirmation to us. Well, it is a bit late, but not too late. You may still find suitable prices for buying in the following sessions.
The market is currently cold for short-sellers. Avoid any short sales and cover the short positions immediately if there are any. We erred on the short side last time but we hope that this is just an exception.
Data provided by: End of Day Data
BUY
CONFIRMED
5.5600
+0.1600 +2.96%
Candlestick Analysis
Today’s Candlestick Patterns:
White Candlestick
Today a White Candlestick was formed. This represents normal buying pressure.
_________________________________________________________________
http://americanbulls.com/StockPage.asp?CompanyTicker=PPC&MarketTicker=NYSE&TYP=S
PPC
For more about this candlestick click here.
Pilgrim's Pride to Participate in BMO Capital Markets 2011 Farm to Market Conference
Pilgrim's Pride Corporation (NYSE: PPC) today announced that it will participate in the BMO Capital Markets Farm to Market Conference in New York City on Tuesday, May 17, 2011. Bill Lovette, Pilgrim's president and chief executive officer, will address investors beginning at approximately 10 a.m. Eastern. The presentation will be broadcast live over the Internet at the following link: www.bmocm.com/conferences/farmtomarket2011/webcast/default.aspx. The presentation will be available in an archived format for six months following the conference.
About Pilgrim's Pride
Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
SOURCE Pilgrim's Pride Corporation
http://ih.advfn.com/p.php?pid=nmona&article=47604835
Wow, the chart is nice, a triple bottom. Not to mention feed prices should be dropping soon if commodities all drop....
Pilgrim's Pride Started At Hold By KeyBanc Capital Markets >PPC
Last Update: 5/6/2011 2:33:36 PM
(END) Dow Jones Newswires
May 06, 2011 14:33 ET (18:33 GMT)
Many Thanks....IMO, could see it coming due to the trend setting in.... Summer should start boosting this back up if feed/fuel prices ease and meat prices move higher as anticipated! Corn can be substituted with other products to lower feed costs but high fuel prices are here for some time to come...IMO!
My view; Seem to always make it sound much worse...
"Industry standard"!IMO
Here's to a bounce UP soon! Cheers....
Pilgrim's Pride Reports Financial Results for First Quarter of Fiscal 2011
Pilgrim's Pride Corporation (NYSE: PPC) today reported a net loss of $120.8 million, or $0.56 per share, on net sales of $1.9 billion for the first quarter ended March 27, 2011. For the comparable quarter a year ago, the company reported a net loss of $45.5 million, or $0.21 per diluted share, on total sales of $1.6 billion.
"While this quarter is historically the weakest due to lower demand at this time of year, we encountered unusually tough circumstances due to high finished inventories, combined with rapidly increasing feed and other costs associated with our inventory levels, severe winter storms and depressed prices for chicken products," said Bill Lovette, Pilgrim's president and chief executive officer. "As part of our plan to reduce working capital, we made the decision to liquidate inventories in the first quarter. While this decision helped our balance sheet by reducing inventories and turning assets into cash, it had a significant negative effect on margins and overall net revenue per pound sold in the quarter. At the same time, lower capacity utilization – including on our prepared-foods line – led to higher operating costs, and winter storms throughout much of the Southeast in mid-January closed a large number of our plants for several days at a time and hurt consumer demand."
Market prices for breast meat averaged $1.26 per pound, down 10% from a year ago, while market prices for wings fell 38%, to $1.00 per pound.
Sales and volume in fresh foodservice remained flat, while sales and volume in frozen foodservice and retail improved, although net sales per pound were down slightly. Export demand remained very strong during the quarter, with volume rising 90% to an all-time record for the period and sales increasing by a similar amount. The company attributed export gains to the lower value of the dollar as well as chicken's value proposition versus higher-priced beef and pork in international markets.
Feed ingredient purchases, which represent the largest component of Pilgrim's cost of goods sold, were approximately $188 million higher during the quarter than the year-ago period. The company recognized $32.0 million in net mark-to-market gains related to changes in the fair value of its derivatives during the first quarter. As of today, Pilgrim's has covered 100% of its anticipated corn needs and approximately 50% of its soybean meal usage through the end of 2011.
Lovette said sales mix remains Pilgrim's single largest opportunity to drive revenue growth and sustained profitability. As part of the plan to improve the value of its product mix, Pilgrim's recently realigned its sales and operations groups by customer segment. Under the new structure, Pilgrim's has established the following business units: Commercial Business, Fast Food, Retail, Prepared Foods-Small Bird Deboning and Prepared Foods-Further Processed. Each of Pilgrim's U.S. operations, as well as Puerto Rico, has been assigned to one of these business units. Each group is led by a general manager who is accountable for a selected group of plants for a customer segment. The general manager directs sales and operations of this segment and is accountable for the product mix, capital needs and financial performance of each business.
"We are taking our existing line-of-business approach a step further by creating truly integrated business units," said Lovette. "This realignment will fundamentally improve our business by driving responsibility and accountability deeper into the organization. Each of these teams will truly 'own' the product mix and the responsibility for achieving the best value possible. We will benchmark each unit's performance against the industry segment in which it participates, and they will be expected to operate in the top 25 percent of that segment."
Looking ahead, he sees a mixed outlook for the chicken industry in 2011. On a positive note, chicken is expected to be increasingly popular among value-conscious consumers, with retailers and foodservice operators featuring chicken more frequently on menus or in weekly ads. In addition, the company has recently succeeded in negotiating additional price increases with some of its retail and foodservice customers in response to continued increases in feed costs.
"Clearly 2011 is going to be a challenging year. Despite now having covered nearly all of our anticipated grain needs through the end of 2011, we are facing at least $500 million in higher feed costs this year. Our customers recognize that the unrelenting upward march of corn and soybean meal is placing extreme pressure on chicken producers and that there must be some sharing of the cost burden in order to ensure a viable business model. To achieve that, we will continue to look at further price increases and will execute structural changes in our book of business with regard to fixed versus market-based pricing," Lovette said. "At the same time, it is absolutely critical that we strengthen our balance sheet, capture our estimated $400 million in plant-related cost improvements and seize the significant sales mix opportunities available across our asset base."
Conference Call Information
A conference call to discuss the company's quarterly results will be held today at 9 a.m. Eastern. To listen live via telephone, call toll-free 800-967-7188, passcode 2677083. International callers should dial 719-325-2106, passcode 2677083. The presentation will be broadcast live over the Internet at http://www.videonewswire.com/event.asp?id=78329. (Please copy and paste the link into the browser.)
Additionally, the company will post a slide presentation on its website at http://www.pilgrims.com which may be viewed by listeners in connection with today's conference call. The webcast will be available for replay within approximately two hours of the conclusion of the call. A toll-free telephone replay will be available today beginning at approximately noon Eastern time by calling 888-203-1112, passcode 2677083. International callers may dial 719-457-0820, passcode 2677083. The replay will be available for 30 days.
About Pilgrim's Pride
Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the company's business plan to achieve desired cost savings and profitability; the ability of the company to achieve the anticipated synergistic gains from the sale of 64% of its common stock to JBS USA Holdings, Inc; the ability of the company to re-open its idled facilities in the manner and on the time schedule planned due to, among other things, the company's dependence on commodity prices and economic conditions; future pricing for feed ingredients and the company's products; additional outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim's Pride's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources, particularly in light of Pilgrim's Pride's substantial leverage; restrictions imposed by, and as a result of, Pilgrim's Pride's substantial leverage; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including exports into Russia, the anti-dumping proceeding in Ukraine and the anti-dumping and countervailing duty proceeding in China; and the impact of uncertainties of litigation as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim's Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Gary Rhodes
Vice President, Corporate Communications and Investor Relations
(903) 434-1495
PILGRIM'S PRIDE CORPORATION
Consolidated Statements of Operations
(Unaudited)
Thirteen Weeks Ended
March 27,
March 28,
2011
2010
(In thousands, except per share data)
Net sales
$ 1,892,476
$ 1,642,918
Cost of sales
1,945,586
1,590,899
Gross profit (loss)
(53,110)
52,019
Selling, general and administrative expense
53,666
48,601
Administrative restructuring charges, net
-
35,819
Operating loss
(106,776)
(32,401)
Interest expense
27,507
28,420
Interest income
(710)
(547)
Miscellaneous, net
(3,806)
(2,325)
Loss before reorganization items and income taxes
(129,767)
(57,949)
Reorganization items, net
-
20,719
Loss before income taxes
(129,767)
(78,668)
Income tax expense (benefit)
(9,872)
(33,304)
Net loss
(119,895)
(45,364)
Less: Net income attributable to noncontrolling interests
865
183
Net loss attributable to Pilgrim’s Pride Corporation
$ (120,760)
$ (45,547)
Weighted average shares of common stock outstanding:
Basic
214,282
214,282
Diluted
214,282
214,282
Net loss per share of common stock outstanding:
Basic
$ (0.56)
$ (0.21)
Diluted
$ (0.56)
$ (0.21)
PILGRIM'S PRIDE CORPORATION
Consolidated Balance Sheets
(Unaudited)
March 27,
December 26,
2011
2010
(In thousands)
Cash and cash equivalents
$ 63,013
$ 106,077
Restricted cash and cash equivalents
61,117
60,953
Investment in available-for-sale securities
1,391
1,554
Trade accounts and other receivables, less allowance for doubtful accounts
376,370
321,300
Account receivable from JBS USA, LLC
13,670
465
Inventories
967,066
1,029,254
Income taxes receivable
56,834
58,465
Current deferred tax assets
3,583
3,476
Prepaid expenses and other current assets
70,331
81,250
Assets held for sale
50,840
47,671
Total current assets
1,664,215
1,710,465
Investment in available-for-sale securities
12,026
11,595
Deferred tax assets
33,794
22,609
Other long-term assets
65,560
67,143
Identified intangible assets, net
47,529
48,950
Property, plant and equipment, net
1,368,791
1,358,136
Total assets
$ 3,191,915
$ 3,218,898
Accounts payable
$ 309,242
$ 329,780
Account payable to JBS USA, LLC
9,955
7,212
Accrued expenses
290,515
297,594
Pre-petition obligations
350
346
Income taxes payable
7,690
6,814
Current deferred tax liabilities
38,744
38,745
Current maturities of long-term debt
62,021
58,144
Total current liabilities
718,517
738,635
Long-term debt, less current maturities
1,397,068
1,281,160
Deferred tax liabilities
3,583
3,476
Other long-term liabilities
114,441
117,031
Total liabilities
2,233,609
2,140,302
Common stock
2,143
2,143
Additional paid-in capital
1,442,930
1,442,810
Accumulated deficit
(469,413)
(348,653)
Accumulated other comprehensive loss
(24,152)
(23,637)
Total Pilgrim’s Pride Corporation stockholders’ equity
951,508
1,072,663
Noncontrolling interest
6,798
5,933
Total stockholders’ equity
958,306
1,078,596
Total liabilities and stockholders' equity
$ 3,191,915
$ 3,218,898
PILGRIM'S PRIDE CORPORATIONSelected Financial Information(Unaudited)
Note: "EBITDA" is defined as the sum of income (loss) from continuing operations plus interest, taxes, depreciation and amortization. "Adjusted EBITDA" is defined as the sum of EBITDA plus restructuring charges, reorganization items and loss on early extinguishment of debt less net income attributable to noncontrolling interests. EBITDA is presented because it is used by us and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the US ("GAAP"), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA from continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company's financial results calculated in accordance with GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under GAAP. They should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with GAAP.
Thirteen Weeks Ended
March 27,
March 28,
2011
2010
(In thousands, except per share data)
Net loss from continuing operations
$ (119,895)
$ (45,364)
Add:
Income tax benefit
(9,872)
(33,304)
Interest expense, net
26,797
27,873
Depreciation and amortization
50,852
57,768
Minus:
Amortization of capitalized loan costs
2,243
3,780
EBITDA
(54,361)
3,193
Add:
Restructuring charges
-
35,819
Reorganization items, net
-
20,719
Minus:
Net income attributable to noncontrolling interest
865
183
Adjusted EBITDA
$ (55,226)
$ 59,548
SOURCE Pilgrim's Pride Corporation
http://ih.advfn.com/p.php?pid=nmona&article=47468759
UPDATE: Pilgrim's Pride Loss Widens On High Inventory, Feed Costs
[In4Luck, this article gives some insight to me why the market is currently selling this stock imo, but I like to look to the companies financials and filings, in addition to what is happening in the industry for long-term investing. Stockinvestor]
Pilgrim's Pride Corp.'s (PPC) first-quarter loss widened, as higher inventory levels and feed costs offset sales growth.
The world's second-largest poultry producer liquidated inventories in the face of weak prices, but expects to produce more pounds of chicken this year than last year. Investors have been closely-watching how producers manage supplies as chicken prices remain weak even as feed costs surge.
"The marketplace continues to be challenging," Pilgrim Chief Executive Bill Lovette said during a conference with analysts.
Shares of the company, of which Brazil's JBS SA (JBSAY) owns a 67% stake, fell 6.3% to $6.09 in recent trading.
Chicken supplies could tighten in the short-term following destruction from a series of devastating tornadoes in the southeast this week. Two Pilgrim processing plants in Alabama remain without power and likely won't have it restored until the end of the weekend. The company estimates more than 100 chicken houses owned by farmers contracted by Pilgrim's were damaged or destroyed. The company doesn't have an assessment yet on how many chickens were killed by the storms.
During the quarter, Pilgrim's decided to liquidate inventories, which hurt its margins and overall revenue per pound sold, while lower capacity utilization raised its operating costs. Winter storms in mid-January closed many plants for several days and hurt consumer demand. Market prices for chicken breasts on average were down 10% from a year ago, while wings fell 38%.
Lovette said he expects industrywide chicken supplies to start falling in the second half of the year as financial pressures continue. As for demand, poultry sales could pick up in the face of surging beef and pork prices, he added.
Lovette faced questions from investment analysts during Friday's conference call over cost-cutting goals and the company's plan to produce more chicken this year than last.
"I think there is some frustration they aren't cutting in the face of likely losses for the rest of the year," BB&T Capital Markets analyst Heather Jones said.
Analysts also questioned plans by the Greeley, Colo.-based company to realize $400 million in savings this year. Pilgrim's now expects to cut that amount from its annual operating costs, yet the savings may not be seen in full in the 2011 calendar year.
For the quarter, Pilgrim's reported a loss of $120.8 million, or 56 cents a share, compared with a loss of $45.5 million, or 21 cents a share, a year earlier. Sales jumped 15% to $1.89 billion.
Analysts polled by Thomson Reuters had most recently forecast a loss of 22 cents on revenue of $1.7 billion.
Gross margin fell to negative 2.8% from positive 3.2%.
-By Mark Peters, Dow Jones Newswires; 312-750-4141; mark.peters@dowjones.com
http://ih.advfn.com/p.php?pid=nmona&article=47473943
As the Mod and having been here longer; Would you care to speculate as to why the selloff?
Find a solid bottom and PPC would be a good bounce to ride...IMO
PPC Downtrend continues...
Not believe, just a figure of speech Stockinvestor... 3.31% doesn't look so bad on the surface but .24 does in my book...But we are talking about a $7 dollar stock... I weigh more on the side of caution when it comes to this company...(just my own opinion)... Coming into peak season here and "should" be seeing a more positive movement IMO! BUT then again "MOST" didn't expect .15 either!
Thanks and GL2U as well....
In4Luck,
I don't see how you believe PPC is taking a beating today, as it only dropped 24 cents or 3.31%, with less than average volume. Just look back 2 and 5 years to see some major drop offs in share price, imo. GLTU, Stockinvestor
Downtrend setting in for PPC? AND near PEAK season also!
PPC taking a beating today! miss something?
This is a NOTIFICATION of the:
2011 PILGRIM'S PRIDE CORPORATION Annual Meeting of Shareholders
MEETING DATE: April 29, 2011
For Holders as of: March 21, 2011
Internet voting is accepted up to 11:59 PM (ET) the day before the
meeting/cut-off date.
This e-mail notification contains information specific to your holdings
in the security identified above.
Note: If your e-mail software supports it, you can simply click on the
link to vote and view material.
http://www.Proxyvote.com/0797147184902
You can enter your voting instructions at proxyvote.com using the link
above. To vote and view the meeting materials on the internet you will need
the control number listed above. In addition to the control number you may
need your four-digit PIN. You will be prompted for a PIN if required. If
you do not know your PIN follow the instructions on proxyvote.com.
Please refer to the proxy materials, available via the links above and
below to confirm if a cut-off date applies to this solicitation. In the
event of a discrepancy between information contained in this e-mail
and the proxy material, the proxy material will prevail.
You can view the shareholder materials by clicking on the links below.
10-K Report
http://www.sec.gov/Archives/edgar/data/802481/000119312511032579/d10k.htm
Proxy Statement
http://www.sec.gov/Archives/edgar/data/802481/000119312511078074/ddef14a.htm
Pilgrim's Pride to Present at J.P. Morgan Global Protein Conference [Also conference happening TODAY at 4:05 EST, please see bottom press announcement. Stockinvestor]
Pilgrim's Pride Corporation (NYSE: PPC) today announced that it will participate in the J.P. Morgan Global Protein Conference on March 30, 2011. Bill Lovette, Pilgrim's president and chief executive officer, will address investors beginning at approximately 9:45 a.m. Eastern. The presentation will be broadcast live over the Internet at the following link: http://cc.talkpoint.com/jpmc001/033011a_mg/?entity=3_I5PJBXO
The presentation will be available in an archived format for six months following the conference.
About Pilgrim's Pride
Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 U.S. states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
SOURCE Pilgrim's Pride Corporation
http://ih.advfn.com/p.php?pid=nmona&article=47011015
Pilgrim's Pride to Participate in Barclays Capital High Yield Bond and Syndicated Loan Conference
Pilgrim's Pride Corporation (NYSE: PPC) today announced that it will participate in the Barclays Capital High Yield Bond and Syndicated Loan Conference in Orlando, FL, on Thursday, March 24, 2011. Bill Lovette, Pilgrim's president and chief executive officer, will address investors beginning at approximately 4:05 p.m. Eastern.[TODAY! Stockinvestor] The presentation will be broadcast live over the Internet at the following link: http://cc.talkpoint.com/barc002/032311a_lp/default.asp?entity=96_7BKDO1I. The presentation will be available in an archived format for six months following the conference.
About Pilgrim's Pride
Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
SOURCE Pilgrim's Pride Corporation
Pork Living High On The Hog While Chickens Are Weak
For pork and chicken, it has been a tale of two meat markets as food prices keep rising around the world.
This divide is perhaps seen most clearly in Wall Street's expectations for pork producer Smithfield Foods (SFD) and U.S. chicken processors Sanderson Farms (SAFM) and Pilgrim's Pride (PPC).
Global pork supplies are tight, prices for bacon and sliced deli ham are up at supermarkets, and U.S. pork exports are growing. On Wednesday, Deutsche Bank upgraded Tyson Foods (TSN) to a buy, noting that Tyson's pork business will help insulate the company until the chicken market turns.
On top of that, live hog prices have increased and pork packer margins are strong, helping to counter the surge in feed-grain costs.
Industry forecasters expect the 88% pop in corn prices over the last 12 months will keep smaller hog producers from raising too many pigs, keeping supplies tight and bolstering Smithfield's profit.
Smithfield appears to have locked in favorable corn contracts, based on past comments to investors. All of these factors are making analysts even more bullish on the No. 2 U.S. deli meat maker, which reports earnings Thursday.
On average, analysts estimate Smithfield will earn $2.62 a share for its fiscal year that ends in April. This projection is up 48% since last September and 39% since December, according to FactSet Research.
Meanwhile, profit targets have sunk for Sanderson and Pilgrim's Pride.
Chicken prices are weak and roughly 75% of U.S. poultry processors are currently losing money as escalating feed-grain costs pummel operating margins. Sanderson is expected to post a loss of 94 cents a share for its fiscal October year, based on the latest FactSet analyst survey. Six months ago, analysts had been hoping for a profit of $4.89 a share.
Pilgrim's Pride is forecast to make 19 cents a share, far less than the 80-cent profit analysts had calculated last September.
Smithfield has been in the midst of a turnaround since mid-2008 when soaring corn prices and an oversupply of hogs forced the company to retrench, sending it through six straight quarterly losses. If analysts are right, Smithfield is on track to report its best full-year profit since 2005.
Back on Oct. 8, chief executive Larry Pope hedged his bets on the company's future. He bought 15,000 shares of Smithfield stock, his first open-market purchase since October 2007. His gain since then: 51%.
If industry conditions remain the same, Pope and other investors could be in for even more gains.
-Matt Andrejczak, 415-439-6400; AskNewswires@dowjones.com
http://ih.advfn.com/p.php?pid=nmona&article=46804605
Pilgrim's Pride to Host Annual Meeting of Shareholders on April 29, 2011
Pilgrim's Pride Corporation (NYSE: PPC) today announced that it will host an annual meeting of shareholders on Friday, April 29, 2011, at 11 a.m. Eastern. The meeting, which will include a review of fiscal 2010 and other business as may be properly brought before the meeting, will take place in New York at a site to be announced soon.
About Pilgrim's Pride
Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
SOURCE Pilgrim's Pride Corporation
http://ih.advfn.com/p.php?pid=nmona&article=46455970
Pilgrim's Pride Expects To Remain Profitable Despite Grain Costs
Pilgrim's Pride Corp. (PPC) should remain profitable in 2011, but higher grain costs and an uncertain economy will pose significant challenges, the company's new chief executive said Friday.
The world's second-largest poultry producer, of which Brazil's JBS SA owns a 67% stake, will spend at least $500 million more on feed in 2011, President and CEO Bill Lovette said. That figure is identical to the increase that competitor Tyson Foods Inc. (TSN) projected last week.
Pilgrim's Pride has purchased all of its grain needs through early August, at what based on the current market would be favorable prices, Lovette said.
The company is planning to offset the higher grain costs through increased sales, particularly with restaurants, and by streamlined production. Lovette said Greely, Colo.-based company plans to realize $400 million in savings in 2011, double the amount it projected in the prior quarter.
Among the changes are a shift to hand-deboning, away from automated processes, a move that Tyson last year credited with improving its bottom line.
Lovette also said he is "very bullish" and export demand and that the company is particularly well positioned because of its ties to JBS.
Still, Lovette said that in December two-thirds of chicken producing operations operated in the red and that industry cutbacks were likely.
Pilgrim's Pride has backed away from previous plans to re-open two idled plants. Lovette said the company planned to run at full capacity at existing plants, including a recently re-opened plant in Georgia.
That differs from former statements in the prior quarter by then Chief Executive Don Jackson, who said the company planned to expand capacity at existing plants. Jackson is now head of JBS' U.S. division.
Many analysts say the industry must scale back production to avoid a glut and to deal with rising feed costs.
Shares of PPC, which were up more than 9% in early trade, retreated during the earnings call, but were still up 3.19% to $8.09.
-By Ian Berry, Dow Jones Newswires; 312-750-4072; ian.berry@dowjones.com
http://ih.advfn.com/p.php?pid=nmona&article=46422184
Three Pilgrim's Contract Growers Receive Family Farm Environmental Excellence Awards From U.S. Poultry & Egg Association
Three contract growers for Pilgrim's Pride Corporation (NYSE: PPC) were honored last week by the U.S. Poultry & Egg Association for environmental excellence at their family-owned farms. The awards were presented at the annual International Poultry Exposition show in Atlanta. It marks the first time in the history of the award that three regional winners grow for the same company.
U.S. Poultry & Egg Association's Family Farm Environmental Excellence Award recognizes exemplary environmental stewardship by family farmers engaged in poultry and egg production. Applicants were rated in several categories, including dry litter or liquid manure management, nutrient management planning, community involvement, wildlife enhancement techniques and participation in education or outreach programs. Applications were reviewed and farm visits conducted by a team of environmental professionals from universities, regulatory agencies, and state trade associations in selecting national winners. Each winner received a $1,000 check.
The three winning contract growers from Pilgrim's were:
Todd and Rodney Huneycutt, owners of Huneycutt Brothers' Family Farm in Albemarle, NC. Their farm, which supplies the Pilgrim's plant in Marshville, NC, includes six poultry houses on 2,200 acres. The family-owned farm is dedicated to environmental stewardship, protecting the environment through science, technology, and best management practices. The Huneycutts maintain a nutrient management plan for litter management, with the majority of the litter used on their own fields. The family reserves 25 acres for a natural habitat for deer and other forest animals.
Carole and Tim Shoemaker, owners of Shoemaker Farm in Burlington, WV. The farm is a third generation, family-run operation that includes two broiler houses on 172 acres. The Shoemakers, who supply the Pilgrim's plant in Moorefield, WV, use a nutrient management plan for applying litter to their land, along with a composter. The farm diverts rainwater from buildings through grass buffers before it can reach surrounding streams. To help enhance wildlife, the farm has dedicated 18 acres of forested woodland as a protected sanctuary for wildlife. Shoemaker Farms also practices energy conservation on a daily basis. The farm is using cold cathode lighting to install radiant heat, resulting in 30% fuel savings.
Bud Shaver Jr., of Lucky Charm Farms in Weyers Cave, Virginia. The farm, which supplies the Pilgrim's plant in Broadway, VA, is composed of 1,755 acres with three broiler chicken houses. Lucky Charm utilizes a nutrient management plan for applying litter to their land, using approximately 50% for their own use. The remaining 50% is sold to third-party buyers. Through its conservation practices, the farm has taken steps to eliminate run-off through the use of a three-mile fence. Another conservation project consists of 10 acres of flood plain, where Bud and his wife, Misty, planted 1,100 trees and native grasses. The flood plain provides a soft boundary for wildlife.
"We are tremendously proud of our contract growers and their focus on environmental best practices," said Walt Shafer, Pilgrim's executive vice president of operations. "These family farmers recognize the importance of being responsible stewards of the environment and promoting sustainability throughout their operations. They are an asset to both our company and our industry."
About Pilgrim's Pride
Pilgrim's employs approximately 41,000 people and operates chicken processing plants and prepared-foods facilities in 12 U.S. states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
SOURCE Pilgrim's Pride Corporation
http://ih.advfn.com/p.php?pid=nmona&article=46277357
Pilgrim's Pride Files Employment Agreement With William Lovette With SEC
Pilgrim's Pride Corporation (NYSE: PPC) yesterday filed a Form 8-K with the Securities and Exchange Commission outlining the company's employment agreement and restricted stock agreement with William W. Lovette, who joined Pilgrim's as president and chief executive office on January 3, 2011 (the "Effective Date").
The terms of the agreements, which were signed January 14, 2011, provide for, among other things:
Annual base salary of $1 million;
Sign-on bonus of $250,000 payable within 30 days of Effective Date;
Guaranteed short-term incentive plan bonus of no less than $500,000 for fiscal 2011;
Arranged purchase of Mr. Lovette's residence in Arkansas at a purchase price not to exceed $2.13 million; and
An award of 200,000 restricted shares of Pilgrim's common stock on or as soon as practicable following the Effective Date, with 50% of such shares to vest on the second anniversary of the Effective Date and the remaining shares will vest on the third anniversary of the Effective Date.
The company intends that the award of the restricted shares will constitute an "employment inducement award" for purposes of the corporate governance provisions of the New York Stock Exchange Listed Company Manual.
A copy of the Form 8-K can be found on Pilgrim's website at the following link: http://phx.corporate-ir.net/phoenix.zhtml?c=68228&p=irol-sec.
About Pilgrim's Pride
Pilgrim's employs approximately 41,000 people and operates chicken processing plants and prepared-foods facilities in 12 U.S. states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
SOURCE Pilgrim's Pride Corporation
Pilgrim's Voluntarily Recalls Pierce Hot & Spicy Breaded Chicken Wings and Sweet Georgia Brand Hot & Spicy Breaded Chicken Wings
Pilgrim's Pride Corporation (NYSE: PPC) today announced it is voluntarily recalling approximately 180,000 pounds of Pierce Hot & Spicy Breaded Chicken Wings and Sweet Georgia Brand Hot & Spicy Breaded Chicken Wings produced for foodservice distributors because the products may contain undeclared egg allergens. The company's quality assurance team identified the issue during an allergen review.
The recalled products, which carry the item codes 1703 and 95122, were sold to foodservice distributors in 20-pound and 10-pound cases, respectively. They were produced in the company's plant in Boaz, Ala. (P-413), and were sold to approximately 30 foodservice distributors across the country. Pilgrim's is in the process of contacting all of the foodservice customers who received the recalled products.
There have been no reports of adverse reactions due to the consumption of any of these products. Anyone who is concerned about an allergic reaction should contact a physician. Consumers or distributors with questions regarding the recall may contact Pilgrim's toll-free at 800-321-1470.
About Pilgrim's Pride
Pilgrim's employs approximately 41,000 people and operates chicken processing plants and prepared-foods facilities in 12 U.S. states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrimspride.com.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
SOURCE Pilgrim's Pride Corporation
http://ih.advfn.com/p.php?pid=nmona&article=45829832
Pilgrim's Pride Appoints William W. Lovette as President and Chief Executive Officer
Pilgrim's Pride Corporation (NYSE: PPC) today announced that its board of directors has appointed William W. Lovette as president and chief executive officer of the company, effective January 3, 2011. Mr. Lovette succeeds Don Jackson, who is resigning from the company effective January 2, 2011, in order to assume the position of president and chief executive officer of JBS USA, which is majority owner of Pilgrim's. Mr. Lovette will report directly to Mr. Jackson, who will continue to serve on Pilgrim's board of directors. In his new role, Mr. Jackson will continue reporting to Wesley M. Batista, who will remain as chairman of Pilgrim's and JBS USA Holdings, Inc.
Mr. Lovette, 50, brings more than 27 years of industry leadership experience to Pilgrim's. Since 2008, he has served as president and COO of Case Foods, Inc. Before joining Case, Mr. Lovette spent 25 years with Tyson Foods in various roles in senior management, including President of its International Business Unit, President of its Foodservice Business Unit and Sr. Group Vice President of Poultry and Prepared Foods. While at Tyson Foods, he served on the boards of Tyson de Mexico, Cobb-Vantress, Inc. and EFS Network, Inc.
"Bill is exceptionally qualified to lead Pilgrim's and our 41,000 employees to even greater success in the years ahead," said Mr. Jackson. "He brings a tremendous breadth of industry experience and a proven track record of success to this role. He has a deep knowledge of the poultry business and the market environment, and we believe that he will lead Pilgrim's to continued growth and profitability."
About Pilgrim's Pride
Pilgrim's employs approximately 41,000 people and operates chicken processing plants and prepared-foods facilities in 12 U.S. states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrimspride.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the company's business plan to achieve desired cost savings and profitability; the ability of the Company to fully achieve all of the anticipated synergistic gains related to the purchase by JBS USA Holdings, Inc. of a majority of our common stock within the time frames expected; the ability of the company to re-open its idled facilities in the manner and on the time schedule planned due to, among other things, the company's dependence on commodity prices and economic conditions; future pricing for feed ingredients and the company's products; additional outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations
and/or demand for its poultry products; contamination of Pilgrim's Pride's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof, including new immigration legislation, or proposed regulations under the Packers and Stockyards Act, or increased enforcement efforts in connection with existing legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including exports into Russia; restrictions imposed by, and as a result of, Pilgrim's Pride's substantial leverage; and the impact of uncertainties of litigation as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim's Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
http://ih.advfn.com/p.php?pid=nmona&article=45690860
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 30, 2010
PILGRIM’S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)
Delaware 1-9273 75-1285071
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
1770 Promontory Circle
Greeley, CO
80634-9038
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (970) 506-8000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
--------------------------------------------------------------------------------
Explanatory Note: This Amendment No. 1 to the Current Report on Form 8-K is being filed to amend and restate in its entirety Item 1.01 of the Current Report on Form 8-K filed with the Securities and Exchange Commission on December 1, 2010.
Item 1.01 Entry Into a Material Definitive Agreement.
On November 30, 2010, Pilgrim’s Pride Corporation, a Delaware corporation (the “Company”), and its subsidiaries, To-Ricos, Ltd. and To-Ricos Distribution, Ltd. (together, the “To-Ricos Borrowers”), entered into Amendment No. 1 (the “Amendment”) to the Credit Agreement dated as of December 28, 2009 (the “Exit Credit Facility”), by and among the Company, the To-Ricos Borrowers and CoBank, ACB, as Administrative Agent and Collateral Agent, and the various financial institutions party thereto (collectively, the “Lenders”).
The Amendment, among other things (1) adjusts the negative covenant regarding incurrence of indebtedness to allow JBS USA Holdings, Inc., the Company’s majority stockholder, or its affiliates to make loans to the Company on a subordinated basis on terms reasonably satisfactory to the agents under the Exit Credit Facility, (2) allows up to $100 million of such subordinated indebtedness to be included in the calculation of EBITDA (as defined in the Exit Credit Facility) and (3) increases the amount that the Company may request, subject to the satisfaction of certain conditions, as an increase to the revolving credit commitments from $100.0 million to $250.0 million. The Amendment also extends the maturity date of the revolving loan commitment through December 28, 2014, and reduces the commitment fee on the revolving commitment availability from a per annum rate of 1.0% to 0.5%.
The Amendment further sets certain financial covenants at terms more favorable to the Company for the remainder of the term of the exit credit facility. Specifically, the Amendment changes the minimum fixed charge coverage ratio so that, after giving effect to the Amendment, the Company will not permit the fixed charge coverage ratio to be less than 1.05 to 1.00 on or before December 31, 2012 or to be less than 1.10 to 1.00 after January 1, 2013. Additionally, the Amendment replaces the maximum leverage ratio with the maximum senior secured leverage ratio. Under the Amendment, the Company will not permit the senior secured leverage ratio for any period to be greater than (1) 4.00 to 1.00 on or before December 31, 2012, (2) 3.75 to 1.00 for the period from January 1, 2013 to December 31, 2013 and (3) 3.50 to 1.00 for any period after January 1, 2014. The “senior secured leverage ratio” means the ratio of (i) senior secured indebtedness to (ii) EBITDA, as adjusted, during the preceding four consecutive fiscal quarters. Senior secured indebtedness means the aggregate principal amount of all indebtedness of the Company (other than unsecured indebtedness), including (A) borrowed money and capital lease obligations, (B) deposits or advances owed by the Company, (C) obligations evidenced by bonds, debentures, notes or similar instruments, (D) obligations under conditional sale or other title retention agreements, (E) obligations related to the deferred purchase price of property or services, (F) all indebtedness of others secured by liens on property of the Company, (G) guarantor obligations, (H) obligations in respect of letters of credit, letters of guaranty, bankers’ acceptances and liquidated earn-outs and (I) any other off-balance sheet liability, each to the extent required to be reflected as a liability on our consolidated balance sheet.
The foregoing provisions of the Amendment will become effective upon the closing of the Company’s private offering of $500.0 million in aggregate principal amount of its senior unsecured notes due 2018, and the satisfaction of certain other conditions.
2
--------------------------------------------------------------------------------
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PILGRIM’S PRIDE CORPORATION
Date: December 13, 2010 By: / S / G ARY T UCKER
Gary Tucker
Principal Financial Officer
Pilgrim's Pride Announces Proposed Offering of $350 Million of Senior Unsecured Notes
Pilgrim's Pride Corporation (NYSE: PPC) today announced that it intends to offer $350 million in aggregate principal amount of senior unsecured notes due 2018 ("the Notes") in a private placement to be conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"), subject to market and other conditions. The Notes will be issued by Pilgrim's Pride and will be guaranteed on a senior unsecured basis by Pilgrim's Pride Corporation of West Virginia, Inc. and any other existing or future domestic restricted subsidiary of Pilgrim's Pride that incurs or guarantees any other indebtedness (with limited exceptions).
Pilgrim's Pride intends to use the net proceeds from the offering to repay borrowings under its existing term loan credit facilities and to pay fees and expenses incurred in connection with the offering.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes and the related guarantees, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Notes and the related guarantees to be offered have not been and will not be registered under the Securities Act or applicable state securities laws, and may not be offered or sold in the United States absent registration or pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
About Pilgrim's Pride
Pilgrim's employs approximately 41,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrimspride.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the company's business plan to achieve desired cost savings and profitability; the ability of the Company to fully achieve all of the anticipated synergistic gains related to the purchase by JBS USA Holdings, Inc. of a majority of our common stock within the time frames expected; the ability of the company to re-open its idled facilities in the manner and on the time schedule planned due to, among other things, the company's dependence on commodity prices and economic conditions; future pricing for feed ingredients and the company's products; additional outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim's Pride's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof, including new immigration legislation, or proposed regulations under the Packers and Stockyards Act, or increased enforcement efforts in connection with existing legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including exports into Russia; restrictions imposed by, and as a result of, Pilgrim's Pride's substantial leverage; and the impact of uncertainties of litigation as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim's Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Gary Rhodes
Vice President, Corporate Communications & Investor Relations
(903) 434-1495
http://ih.advfn.com/p.php?pid=nmona&article=45462861
UPDATE: Pilgrim's Pride Earnings Fall, But Beat Expectations
Today : Friday 29 October 2010
Pilgrim's Pride Corp.'s (PPC) third-quarter earnings fell 30% due to the impact from taxes, yet topped analysts' expectations.
Shares surged on the report, climbing as much as 10% in trading Friday as the chicken and prepared foods producer delivered higher-than-expected margins and returns that were driven by cost-cutting from a restructuring.
For the quarter, Pilgrim's Pride reported a profit of $57.9 million, or 27 cents a share, down from $82.7 million, or $1.07 a share, a year earlier. Revenue decreased 0.9% to $1.72 billion. Pressing on the bottom line was the prior year having a $24.8 million income-tax benefit, while the current year had a $30.5 million provision. Gross margin fell to 9.3% from 10%.
Analysts polled by Thomson Reuters most recently forecast earnings of 18 cents a share on revenue of $1.76 billion. Analysts had expected gross margins of 7.9%.
Stephen Share, an analyst with Morgan Joseph & Co., said there are signs the company's cost-cutting efforts are bearing fruit. Pilgrim's Pride emerged from Chapter 11 bankruptcy in December after a 13-month restructuring that left Brazilian beef giant JBS S/A (JBSAY, JBSS3.BR) as a majority holder.
"The top line was ok, but they posted a really good gross margin relative to expectations," he said.
Pilgrim's Pride shares recently traded 48 cents, or 8.4%, higher at $6.19.
Company Chief Executive Don Jackson said the latest results reflect continued sequential improvement in operating efficiencies and cost controls.
The company is optimistic headed into next year despite concerns about rising grain prices and the "uncertain" economy, with food service demand already increasing and expectations for higher beef and pork prices resulting in chicken likely being "attractively positioned with consumers who are looking for the best value."
While chicken demand has been improving from last year's weak levels, U.S. supplies have been ballooning, threatening profits of big poultry companies. Pilgrim's Pride and other major producers also are in the midst of expansion projects as they chase expanding margins and growing export markets, though analysts say cutbacks will be needed to support prices.
Pilgrim's Pride reiterated previously announced expansion plans Friday, including the re-opening of a Georgia plant that will start processing birds in January.
-By Ian Berry, Dow Jones Newswires; 312-750-4072; ian.berry@dowjones.com
(Tess Stynes contributed to this report.)
http://ih.advfn.com/p.php?pid=nmona&article=44996670
Lawmaker: A 'disturbing picture' of egg production
[not a good time to be in the egg production business, although if one can make it during tough times or show a much higher and safer quality process, then one might be even able to gain market share, imo. Food safety is certainly getting alot more press the last couple of years with all the food scares, that is one of the reasons that I have invested in this area, ie. www.genethera.net, etc...GLTUA, Stockinvestor]
By MARY CLARE JALONICK, Associated Press Writer Mary Clare Jalonick, Associated Press Writer – 28 mins ago
WASHINGTON – Members of a House subcommittee showed photos of dead chickens, bugs and holes in hen houses on Wednesday as they prepared to question the heads of two egg farms linked to as many as 1,600 cases of salmonella poisoning this summer.
The committee chairman, Rep. Bart Stupak, D-Mich., said the outbreak paints "a very disturbing picture of egg production in America."
The owner of Wright County Egg, Austin "Jack" DeCoster, said in prepared testimony that he was "horrified" to learn that his eggs may have sickened so many people. But DeCoster also suggested that the outbreak might not be his company's fault.
Sarah Lewis, 30, testified that she still has diarrhea, fevers and stress in spite of a trip to the intensive care unit and several weeks of sickness after eating a custard tart at her sister's graduation banquet. Her sister also contracted salmonella poisoning from the eggs.
"Knowing how sick we were scares the heck out of us now," Lewis said.
Another victim, Carol Loboto, 77, teared up as she described a loss in stamina and constant indigestion.
The panel has asked DeCoster to come prepared to explain what steps have been taken to address salmonella contamination found at the farms.
In testimony released by the company, Wright County Egg, DeCoster and his son, Peter DeCoster, say they believe an ingredient sold to them by an outside supplier may be to blame for the outbreak.
So far, an FDA investigation appears to be focused on Wright and another company linked to the illnesses, Hillandale Farms. The two companies recalled more than a half-billion eggs related to the outbreak in August.
Agency investigators found several samples of salmonella at the two farms. An investigation by the House subcommittee found that Wright County Egg had received hundreds of positive results for salmonella in the last two years, including 73 samples that were potentially positive for Salmonella Enteritidis, the strain responsible for the recent outbreak.
"We were horrified to learn that our eggs may have made people sick," Jack DeCoster said in the testimony. "We apologize to every one who may have been sickened by eating our eggs. I pray several times each day for all of them and for their improved health."
The president Hillandale Farms, Orland Bethel, will also testify at the hearing. Wright County Egg operates one of Hillandale's barns and supplies feed to the company.
Jack DeCoster is no stranger to tangling with the government. He has paid millions of dollars in state and federal fines over at least two decades for health, safety, immigration and environmental violations at his farms.
In the testimony, DeCoster says his companies, which span several states, grew too fast.
"We were big before we started adopting sophisticated procedures to be sure we met all of the government requirements," he said. "While we were big, but still acting like we were small, we got into trouble with government requirements several times."
Peter DeCoster, CEO of Wright, said the company has made "sweeping biosecurity and food safety changes" following the recall and will remove all their flocks that have not been vaccinated against the strain of salmonella linked to the illnesses. Such vaccinations are not required by the government. On site inspections and testing will also increase, he said.
Peter DeCoster also said the FDA inspected the company's feed mill in May and found no deficiencies. That is contrary to previous statements from the agency, which has said FDA has no inspectional history with the companies.
The specific cause of the outbreak is still unknown, and the FDA is still investigating.
No deaths have been reported due to the outbreak. The federal Centers for Disease Control and Prevention has said this is the largest outbreak of this strain of salmonella since the start of the agency's surveillance of outbreaks in the late 1970s. For every case reported, there may be 30 that are unreported.
___
Online:
FDA on egg recall: http://www.fda.gov/food/newsevents/whatsnewinfood/ucm222684.htm
http://news.yahoo.com/s/ap/us_tainted_eggs
Pilgrim's Resumes Export Shipments to Russia
Today : Friday 3 September 2010
Pilgrim's Pride Corporation (NYSE: PPC) said it will resume export shipments to Russia tomorrow after the Food Safety Inspection Service (FSIS) finalized certificates that must accompany the shipments.
Pilgrim's has four Russia-approved processing plants that are currently packing product for Russia. Those plants are located in Boaz, Ala.; Russellville, Ala.; Athens, Ga.; and Dallas, Texas. The company said it expects shipments to Russia to begin loading at U.S. ports tomorrow.
"Demand from Russia is very strong. We have sold out our entire Russian-approved production for the next 30 days and prices have continued to strengthen," said Don Jackson, Pilgrim's president and chief executive. "Russia is an important export market for U.S. chicken and the re-opening of the borders will be a significant benefit to our company and industry."
In July, Russian officials signed a formal poultry agreement with the United States outlining new processing requirements for domestic chicken that is to be exported to Russia. Earlier this year, Russia had banned all U.S. chicken that had been processed with chlorinated water. Under the new requirements approved in July, U.S. chicken companies can replace the chlorinated rinse with cetylpyridinium chloride, peroxyacetic acid or hydrogen peroxide.
About Pilgrim's
Pilgrim's Pride Corporation employs approximately 41,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrimspride.com.
Contact:
Gary Rhodes
Vice President, Corporate Communications and Investor Relations
(903) 434-1495
http://ih.advfn.com/p.php?pid=nmona&article=44240494&symbol=NY%5EPPC
China imposes anti-subsidy duties on US chicken
China imposes 5-year anti-subsidy duties on US chicken amid trade spats with Washington: "Pilgrim's Pride Corp. 5.1 percent"
BEIJING (AP) -- China has imposed anti-subsidy duties for five years on imports of U.S. chicken products after concluding producers received improper support, the Commerce Ministry said Wednesday amid a string of trade spats with Washington.
Importers must pay tariff rates ranging from 4 percent to 30.3 percent on U.S. broiler or chicken products, starting Aug. 30, the ministry announced. The ministry said producers benefited from government subsidies that lowered feed prices and hurt Chinese competitors.
The tariffs apply to chicken parts and whole birds but not to live chickens or cooked products such as chicken sausage.
The announcement was the final ruling in a case announced earlier this year.
Among major producers, Tyson Foods Inc. is required to pay 12.5 percent duty, Pilgrim's Pride Corp. 5.1 percent and Perdue Farms Inc. 7.4 percent, the ministry said.
China imported 305,600 tons of U.S. chicken products in first half of last year, the ministry said on its website. Imports were 584,000 tons for all of 2008.
Products from the U.S. accounted for 89.2 percent of China's chicken product imports in the first half of 2009, the ministry said.
Beijing and Washington also are embroiled in disputes over access to each other's markets for steel pipes, movies and books and other goods.
The trade disputes have proliferated as governments try to boost exports amid weak demand. The two governments have accused each other of protectionism that they say could slow a global recovery.
Associated Press researcher Bonnie Cao contributed to this report.
http://finance.yahoo.com/news/China-imposes-antisubsidy-apf-3003233079.html?x=0&.v=4
Thanks Mu12450 for your answers.
As I understand things, all the major processing companies make their own food and haul it to the growers. I think PPC does sell some eggs, at least they are for sale in the company store. The problem, I think, is with some big egg producers, not chicken producers (Pilgrim's, Tyson...) had egg suppliers that bought some bad food.
Pilgrim's Pride is looking for good for expanded markets, imo, especially with them reopening the Russian market! I have not read of any of the latest FDA recalls on eggs (obviously from infected chickens) being associated with PPC, but I did read somewhere that it was caused by the feed...is there any chance that the feed is used by PPC or not? I could not find this out at the FDA recall site (http://www.fda.gov/Safety/Recalls/default.htm), but thought that maybe someone here knows where to look. Thanks GLTUA, Stockinvestor
Pilgrims Pride forecasts good11 Aug 2010
BMO Capital Markets analyst Kenneth Zaslow has raised his fiscal 2010 earnings forecast for Pilgrim’s Pride, despite the fact that the company on Friday reported lower second quarter sales and profits, and despite industry concerns about rising feedgrain prices.
Zaslow raised his fiscal 2010 earnings forecast to 47 cents per share from 38 cents.
In a note to investors, he cited four reasons for his optimism:
Pilgrim’s Pride’s 3.1 percent U.S. chicken margins illustrate initial signs that management has begun to improve underlying operating efficiencies by shifting toward value products, generating over $40 million in costs savings, regaining lost volume, and gaining market share across channels.
The company will likely be positioned to expand margins sequentially the reopening of the Russian market, improvement in product mix, and higher operating efficiencies. On Friday company executives indicated leg quarter sales to Russia are averaging 60 cents per pound for August and over 60 cents for September.
Pilgrim’s Pride expects total production to increase 3 percent (including higher weights) in 2011, which will still ensure production below 2008 levels.
The company is expected to begin deploying capital expenditures to improve operating efficiencies and reduce debt by at least $100 million.
GREELEY, COLO. – Pilgrim’s Pride Corp.’s net income for the second quarter of fiscal 2010, ended June 27, was $34,588,000, equal to 15c per share on the common stock. The results include a non-recurring, pre-tax charge of $16.9 million related to a write-down related to its former corporate headquarters in east Texas and an office building in Atlanta. The company recently moved its headquarters to Greeley. For the comparable quarter a year ago, Pilgrim’s Pride earned $53,239,000, equal to 72c per share.
Sales for the second quarter were $1,707,568,000, a slight decline compared to the same period during 2009 when sales were $1,776,813,000.
“Cost improvement in the short-term, and product mix and price in the long-term, continue to be our largest opportunities for creating value,” said Don Jackson, president and chief executive officer. “We are succeeding in bringing in new, higher-margin business in both retail and food service in the third quarter. Overall we are seeing good demand from customers, and we intend to grow our share and volume in every channel.
“Sales and volume in the second quarter increased across our retail and food service segments when compared to the first quarter. In terms of supply and demand, we are in balance with our boneless skinless breast meat, with all of that product being absorbed by our core retail and food service businesses.”
Mr. Jackson said he is cautiously optimistic about industry fundamentals heading into the second half of the year, as overall production is estimated to rise 2.7% in 2010.
“That is still well below the pre-cutback levels of 2008, and supplies at this point remain fairly tight,” he said. “Based on the current supply across all three meat proteins, I believe the industry will remain relatively strong. In general, our customers appear to be optimistic, and I believe we will see more price support for chicken as supplies remain below pre-cutback levels.”
For the first six months of fiscal 2010, Pilgrim’s Pride recorded a loss of $10,776,000. The results include a non-recurring re-organization charge of $71.2 million. The company recorded a loss of $5,170,000 during the same period of the previous year.
Sales for the first six months of 2010 were $3,350,486,000, a slight increase compared to the same period in 2009 when sales were $3,474,915,000.
JBS and Bo owns most of this - should move fast with overall good market news IMO.
The stock does move fairly easy. I see potential here too.
Well, the entire market is pretty crappy right now.
I might be interested at buying around 5. We will see. The entire market is down.
Indicators still down. Don't really know where the bottom is yet.
In terms of production of broilers, Pilgrim’s Pride ranks first in the nation over all other poultry companies with more than 174 million ready-to-cook pounds produced annually as of 2008.
Despite seemingly robust numbers for the company, Pilgrim’s Pride has experienced some financial turbulence in 2010. Though ranked No. 317 on the Fortune 500’s list of largest corporations, the company got a little smaller in January when it eliminated 230 corporate and administrative jobs as part of the company’s sale of 64 percent of its stake to Brazilian-based JBS for a bid of $2.8 billion.
On May 6, Pilgrim’s Pride released its first-quarter earnings, which reported a net loss of $45.5 million. In a stockholder press release, the company listed several factors for the loss, including: restructuring and reorganization costs; a delay in the addition of new further-processed volume which forced the company to sell commodity meat at lower prices; a loss of approximately $11 million related to grain hedges, of which $6 million was mark-to-market on open positions; and lower-than-anticipated market prices for dark meat.
“While I am encouraged by the progress we have made in several areas of our business, our overall performance in the first quarter of fiscal 2010 was below our expectations,” said Don Jackson, Pilgrim’s Pride president and chief executive in a press release.
Pilgrim’s Pride stock closed at $7.23 on Thursday, up 37 cents from the previous day’s trading.
Read more: Times-Georgian - Poultry farming an economic engine for Carroll
If you find out let me know.
Their plants are running, more being put back on line. Prices holding, exports look good.
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Pilgrim's Pride Corporation
1770 Promontory Circle
Greeley, CO 80634-9038
United States
Phone: 970-506-8000
Fax: 970-506-8307
Website: http://www.pilgrims.com
Business Summary |
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Pilgrim's Corp. produces, processes, markets, and distributes fresh and frozen chicken products to retailers, distributors, and foodservice operators primarily in the United States. Its fresh chicken products consist of refrigerated (non-frozen) whole or cut-up chicken; and pre-marinated or non-marinated, as well as prepackaged case-ready chicken, which includes various combinations of freshly refrigerated, whole chickens, and chicken parts. The company also offers a range of prepared chicken products, including portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts. In addition, it exports whole chickens and chicken parts to approximately 95 countries, including Mexico, Russia, Puerto Rico, and China. The company was formerly known as Pilgrim's Pride Corporation. Pilgrim's Corp. was founded in 1945 and is headquartered in Greeley, Colorado. Pilgrim's Corp. operates as a subsidiary of JBS USA Holdings, Inc.
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