Greeley-based Pilgrim’s Pride on Wednesday reported third-quarter net sales of $2.11 billion, down from $2.27 billion in the same quarter of 2014.
The second-largest U.S. poultry processor said net income dropped to $137.1 million from $256 million in third quarter of last year, and per-share earnings dropped to 58 cents from $1.01.
CEO Bill Lovette blamed avian influenza, challenges in the export market, the strong dollar and “the lowest chicken cutout in the past five years,” which describes the gap between the cost to buy live chickens and price of finished product.
“In spite of the tough environment last quarter, our cash flow generation continues to be strong and our team remains relentless in uncovering additional methods to increase operational efficiencies, enhance relationships with key customers, and build competitive advantages,” he wrote. “We remain committed to creating and maximizing shareholder value while retaining our financial discipline. Year to date, we have paid out $1.5 billion in special dividend to our shareholders, acquired additional Mexican operations to improve our geographic diversification and competitiveness in one of the strongest emerging markets, and instituted a $150 million share repurchase agreement.”
Pilgrim’s Pride in June completed the acquisition of Tyson Foods’ Mexico operations for about $400 million. The company employs about 35,000 people and operates chicken processing plants and prepared-food facilities in 12 states, Puerto Rico and Mexico.
Though it is publicly traded, about 73 percent of Pilgrim’s Pride is controlled by JBS USA Holdings, parent to Greeley-based JBS USA , one of the world’s largest beef and pork processing companies.
