Pilgrim's Pride Corporation Announces Expansion Plans
Nov 19 13
Pilgrim's Pride Corporation announced several operational changes to improve efficiencies as part of its goal to generate approximately $200 million in savings in 2014. Effective January 24, 2014, Pilgrim's will expand its operations in Russellville, Ala., and Douglas, Ga., to absorb the current fresh poultry processing operations in Boaz, Ala. This consolidation will allow the company to maintain current production levels, more efficiently utilize idle capacity and generate more than $20 million in incremental margin. In addition, the company will invest approximately $10 million to upgrade its feed mill in Falkville, Ala., and add approximately 100 jobs at the Douglas and Russellville operations. Pilgrim's, consistent with its long-term strategy to align the company's core competencies with customer needs, will also invest approximately $25 million to expand large bird deboning capacity and modernize utilities at its Mt. Pleasant, Texas, facility. The company previously announced an investment of $25 million to upgrade its feed mill and processing operations in Enterprise, Ala.
Pilgrim's Corp. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 29, 2013; Announces Asset Impairments for the Third Quarter of 2013; Provides CapEx Guidance for 2013 and 2014
Oct 31 13
Pilgrim's Corp. announced unaudited consolidated earnings results for the third quarter and nine months ended September 29, 2013. For the quarter, the company reported net sales of $2,142,815,000 against $2,068,478,000 a year ago. Operating income was $189,118,000 against $61,706,000 a year ago. Income before income taxes was $166,602,000 against $43,990,000 a year ago. Net income attributable to the company was $160,917,000 or $0.62 basic and diluted per share against $42,931,000 or $0.17 basic and diluted per share a year ago. EBITDA was $222,515,000 against $102,956,000 a year ago. Adjusted EBITDA was $226,067,000 against adjusted $105,593,000 a year ago. Cash flows from operations were $285.8 million enabling to reduce debt by $252 million. The results reflects solid results in the period from transition from old crop to new crop.
For the nine months, the company reported net sales of $6,363,863,000 against $5,931,720,000 a year ago. Operating income was $501,005,000 against $222,891,000 a year ago. Income before income taxes was $430,259,000 against $151,036,000 a year ago. Net income attributable to the company was $406,204,000 or $1.57 basic and diluted per share against $151,462,000 or $0.61 basic and diluted per share a year ago. EBITDA was $603,940,000 against $329,583,000 a year ago. Adjusted EBITDA was $608,724,000 against $335,274,000 a year ago. Net debt was $582,099,000 for the year to date period. Cash provided by operating activities was $596,716,000 against $155,961,000 a year ago. Acquisitions of property, plant and equipment was $76,293,000 against $62,110,000 a year ago.
The company also reported asset impairments of $361,000 for the third quarter of 2013.
In 2013, the company have a CapEx target, and the company said that it is at target, to reach $110 million.
For the fiscal year 2014, the company expecting around between $130 million to $150 million in CapEx.
A Federal Appeals Court Overturns $25.8 Million Decision Against Pilgrim's Pride Corporation
Aug 29 13
A federal appeals court has overturned a $25.8 million decision against Pilgrim's Pride Corporation in which contract chicken farmers in Arkansas and Louisiana had sued, contending that the company tried to fix prices. A three-judge panel of the 5th U.S. Circuit Court of Appeals in New Orleans said a U.S. magistrate judge in Texas erred when he ruled that the poultry firm's decision in 2009 to shutter an El Dorado processing plant had been done for the purpose of manipulating or controlling the price of chicken. The magistrate judge ruled in favor of the contract farmers in late 2011, saying such a move is a violation of a section of the Packers and Stockyards Act - legislation that discourages anti-competitive practices between packers and producers and consumers. The decision affected 91 contract chicken farmers from Arkansas and Louisiana who lost their contracts when the plant was shut down. Each grower was expected to collect a settlement payment ranging from $9,763 to $864,967. In their decision filed Tuesday, Judges Eugene W. Davis, Edith H. Jones and Jerry E. Smith said Pilgrim's Pride's decision to cut production was a legitimate response to a dynamic market, noting a company does not break the law by cutting production so that prices may recover. They said the relevant question in the case is to determine whether Pilgrim's Pride's decision to reduce chicken output was improper and anti-competitive.